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UK entrepreneurs have sounded the alarm that Washington’s trade tariffs pose a direct threat to profits, prompting some to signal that they plan to halt operating in the US altogether, a new survey reveals.
The research, conducted by entrepreneur network Helm, showed that 64 per cent of its members believe the recent tariffs imposed by President Donald Trump will affect their bottom lines, with one in five considering reducing or ceasing their operations in the US.
According to the survey, 13 per cent said they were “extremely likely” to withdraw from the US market, signalling a potentially significant shift in how small businesses operate there.
Entrepreneurs cited supply chain costs, the impact on direct product exports and distribution partnerships as key concerns in the changing trade landscape.
“These tariffs are creating ripples that could become waves across the Atlantic trade relationship,” said Andreas Adamides, chief executive of Helm. “We’re seeing UK entrepreneurs at a crossroads — some standing firm, others charting new courses away from American shores.”
He added: “While many are adapting their strategies — adjusting price points, exploring new territories, or developing different products — the terrain of UK-US trade is shifting beneath our feet.”
The findings come days after a survey by the global bank HSBC, which polled 2,000 UK companies ranging from small businesses to large corporates. It found that 66 per cent of businesses would face some impact in response to the tariffs.
Tina McKenzie, policy chair of the Federation of Small Businesses, said confidence among small businesses is “already fragile, so tariff hikes on UK-US trade will hit small firms hard”.
The US is the leading market for 59 per cent of small exporters, she added, so adding costs to that threatens a vital source of income for thousands of businesses.
“Exporting is one of the few ways small firms can strengthen their position during uncertain times, which is why negotiations to promote free trade with the US, EU and other countries must continue,” said McKenzie.
The disruption to international shipping between China and the US caused by the tariffs is already affecting Hunter Luxury, said the chief executive of the packaging manufacturing company.
Mike Banister said production jobs in Chinese factories had stalled and shipments were sitting in warehouses indefinitely. Goods that were being shipped, meanwhile, faced delays as congestion built at US ports. “In the medium to long term,” he said, “plans are having to be completely reassessed.”
Banister added that the uncertainty around possible further tariff announcements “is, if anything, even worse”.
The ongoing market volatility has caused 28 per cent of Helm members to begin exploring alternative markets, with just under 10 per cent of the 400 respondents already securing new partnerships outside of the US, the survey found.
“We have been actively exploring other supply routes from countries that we believe won’t be so impacted, such as India, Malaysia, Cambodia and Turkey,” said Mark McCormack, co-chief executive of Talking Tables, a party supplies business, on finding options other than China.
While some look elsewhere, nearly a quarter of respondents remain committed to their place in the US market, implementing mitigation strategies to ride out the tariff-led uncertainty.
A third said they planned to continue to do business there in much the same way as before the tariff announcement, adopting a “wait-and-see approach”.
On Wednesday, the US president said he planned to exempt carmakers from some tariffs; last week, his administration said it would exempt consumer electronics from the “reciprocal” tariffs placed on Chinese imports.
Businesses of all sizes will be closely watching any outcome from Friday’s meeting in Washington DC between UK chancellor Rachel Reeves and her US counterpart Scott Bessent to discuss a potential UK-US trade deal.
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