SMEs hit by soaring tariff swings, sparking a fresh look at global trade alliances

Brittle UK SMEs Brace for Tariff Tumble

Hey there, business owners! The global trading arena is being shaken up harder than your grandma’s Sunday roast, thanks to U.S. tariff wiggle‑waggle. A fresh look by Bibby Financial Services (BFS) shows that over half of UK SMEs feel the pinch.

Key Findings at a Glance

55% of surveyed UK SMEs say tariffs are the “biggest headache” right now (up 15 % from last year).
47% expect overseas trade to drop by year‑end, climbing to 51% where the U.S. is their top export target.
Tariff costs? Roughly £17,000 per business—a belly‑ache that adds to rising interest rates and stubborn inflation.
Only 20% of SMEs are sliding away from the U.S., swapping dollar payments for euros or sterling to dodge volatility.
Create new alliances? 64% plan to chase fresh markets within the next 12 months, with China topping the list at 13%.
Feel the Brexit sting? 56% think it hurts their global standing, and 66% would vote to stay in the EU if they could.

What’s the Bottom Line?

US tariffs are creating a domino effect that’s rattling UK SMEs. Big picture? They’re scrambling to keep margins, look for new partners, and gamble on the next big market. Amid shifting trade rules and geopolitical chaos, the bumpy road ahead demands that businesses stay ahead of the curve.

Jotting It Down for 2025

Reevaluate supply chains & customer nets.
Capitalize on “friendshoring” – aligning with political allies or free‑trade buddies.
Keep an eye on currency swings; risk‑management isn’t optional.

Bottom line—stay nimble, stay informed, and dare to pick up that new partnership for a good shot at growth in 2025.