The current US-led trade wars feel like they have gone on far too long, involved far too many characters, and now make so little sense that it is easy to see why everyone is struggling to catch up.
What do you mean the latest tariffs were only announced at the start of the month? It seems like we’ve lived through five economic cycles already and there is more on the way.
This would normally be the part where we provide a calm, sensible overview of the current state of play.
However, given that policies are being reversed left, right, and centre, it is hard to know where anyone stands.
By the time you reach the end of this sentence, it’s entirely possible a 32 per cent tariff has been slapped on some unique minerals in some far-off land.
Tariffs, tantrums and trade chaos: what SMEs need to know
Here’s what we can say, at least for now: the US tariff ‘strategy’ – if we’re still calling it that – has destabilised global markets.
Prices rise and fall with presidential mood swings. Investors are rattled. Global supply chains are tense.
SMEs rarely have the buffer or bandwidth to ride out this level of unpredictability and are rightfully concerned.
While the UK has so far escaped the brunt of it (a 10 per cent tariff versus heavier blows elsewhere), no country operates in a vacuum.
UK SMEs are deeply tied to global markets – whether directly through imports and exports, or indirectly through suppliers, consumer demand, and currency shifts.
If your business relies on goods or materials from abroad, or exports overseas, it may be time to take a closer look at your trade map and assess where potential risks lie.
Even if you don’t trade internationally, global uncertainty has a way of trickling down into everything from consumer confidence to access to finance.
The 90-day pause – What next?
Currently, there’s a temporary pause – a 90-day breather that may or may not be real by the time you read this.
It’s supposedly a window for negotiations, but like everything else in this saga, it could U-turn before you’ve had your morning coffee.
Markets have responded with cautious optimism.
For SMEs, this “pause” should be treated less like a break and more like a moment to prepare for all eventualities.
Use this time to revisit your supply chains, budgeting forecasts and contingency plans.
Because let’s face it – we’re all just one tweet away from a fresh tariff on tap water.
How to weather the volatility
Uncertainty may be the only constant, but there are ways to future-proof your business:
- Scenario planning – Model the impact of rising import/export costs on your margins.
- Risk Assessment – use our FMEA model to assess where you are at risk and hat you can do about it
- Flexible budgeting – Build contingency into your cash flow forecasts.
- Supply chain diversification – Can you source locally? Or find alternative suppliers in different markets?
- Professional advice – The right guidance can help you make sound financial decisions even when the playing field keeps shifting.
Final thought (for now…)
Planning long-term feels almost impossible when trade policy changes minute-by-minute.
While we can’t predict the next twist in the tariff drama, we can help you stay agile and prepared.
Don’t get caught out by the Trump tariff turmoil – get in touch with our team today. (Unless tariffs have been reversed again by then – in which case, still get in touch. Just in case.)