The news of 10 per cent tariffs on UK-US trade is a major blow to SMEs. Currently, 59 per cent of small UK exporters sell into the US market.
Tariffs will cause untold damage to small businesses trying to trade their way into profit while the domestic economy remains flat. The fallout will stifle growth, hurt opportunities, and put a serious dent in the global economy. Now, we’ll need to look at the fine print to work out the precise implications for the UK’s small exporters.
We support the push for an agreement between the UK and US governments that brings an end to tariff wars and puts SMEs at its centre by reducing non-tariff barriers.
It’s already tough out there for small firms wanting to export. However, the opportunities it brings are endless – allowing them to tap into new markets and diversify their revenue streams. Those who do export are more likely to grow faster during tough economic times, too.
The UK Government should now be ready to provide emergency assistance to any SMEs at risk of collapse. This will provide breathing space and support, protect people’s wages, and ensure that suppliers owed payments are paid – all helping to contain the fallout and allow firms a bridge as they adapt.
