Trump’s New Tariffs: What They Mean for UK Businesses & How to Stay Resilient
- David Manklow
- Apr 3
- 2 min read
On April 3, 2025, U.S. President Donald Trump announced the implementation of a 10% tariff on imports from the United Kingdom as part of a broader strategy to address perceived trade imbalances. While this rate is lower than the 20% imposed on the European Union, it nonetheless presents significant challenges for UK businesses engaged in transatlantic trade.
Trump's tariffs summery
Country/Territory | Tariff Rate | Additional Notes |
China | 34% | Combined with a pre-existing 20% tariff, totalling 54% on Chinese goods. |
Vietnam | 46% | |
Sri Lanka | 44% | |
Bangladesh | 37% | |
Thailand | 36% | |
Taiwan | 32% | |
Indonesia | 32% | |
Switzerland | 31% | |
South Africa | 30% | |
Pakistan | 29% | |
India | 26% | |
South Korea | 25% | |
Japan | 24% | |
European Union | 20% | |
Cambodia | 49% | |
Malaysia | 38% | |
Philippines | 32% | |
Singapore | 31% | |
Australia | 17% | |
Brazil | 24% | |
Mexico | 25% | Tariffs on non-compliant goods, including foreign-made cars and parts. |
Canada | 25% | Tariffs on non-compliant goods, including foreign-made cars and parts. |
United Kingdom | 10% | Baseline tariff rate. |
Impact on UK Businesses
The introduction of these tariffs is poised to affect a wide array of UK industries. Sectors such as manufacturing, automotive, and agriculture, which rely heavily on exports to the U.S., may experience increased costs and reduced competitiveness in the American market. Economists warn that these tariffs could lead to higher prices for consumers and contribute to inflationary pressures within the UK economy. AP News
Business groups have expressed deep concerns regarding the potential ramifications. The Federation of Small Businesses (FSB) described the tariffs as "devastating" for UK firms already grappling with sluggish growth. Additionally, the automotive industry faces specific challenges, with a 25% tariff on foreign-made automobiles expected to impact manufacturers like Aston Martin and Jaguar Land Rover significantly.
Government Response
In response to the tariffs, Prime Minister Sir Keir Starmer emphasized a measured approach, stating that the UK would respond with "calm heads" and focus on continued negotiations with the U.S. to secure a broader economic deal. While acknowledging the challenges posed by the tariffs, Starmer highlighted that the UK's independent trade policy post-Brexit allowed for more tailored negotiations, potentially mitigating some adverse effects.
Financial Solutions for Affected Businesses
For UK businesses facing financial strain due to these new tariffs, exploring tailored financial solutions can provide essential support. Approved Finance Group offers a range of products designed to help businesses navigate economic challenges:
Business Loans: Flexible financing options to assist with cash flow management and operational expenses.
Asset Finance: Solutions to acquire essential equipment or machinery without significant upfront costs.
Property Finance: Funding options for property acquisition or refinancing to support business growth.
Motor Finance: Tailored financing for vehicle purchases, crucial for businesses reliant on transportation.
By leveraging these financial products, businesses can better manage the immediate impacts of the tariffs and position themselves for long-term stability and growth
