There may be opportunities ahead
The US tariff saga has caused turmoil across global financial markets. Even though the UK’s main rate is a relatively low 10% (25% on British cars), many are concerned about what the effects will be on global supply chains, pricing and business confidence.
What could this all mean for your business? Read on as we look at 4 strategic areas.
- Protect Your Sales from Falling Confidence
When uncertainty rises, both consumers and businesses tend to hold off on spending – especially on goods and services they see as non-essential. Even if you don’t sell internationally, your customers might pull back. That could mean fewer orders, delayed projects, or reduced repeat business.
What you can do:
- Focus on customer retention. You could consider offering flexible options, smaller packages or promotions that keep work flowing. Staying visible and keeping communication open are also key.
- Think creatively about how you present the value of your business to customers, so that they see your products or services as something they can’t do without, even in lean times.
- Review your sales mix: do you rely heavily on one or two customers or sectors that might be vulnerable?
Tip: Review your last 6 months sales. Are there any signs of slowing down? Consider doing a quick check-in with your top 5-10 customers this month – a short email or phone call can uncover valuable information and strengthen the relationship at the same time.
- Track Your Costs
Tariffs add costs all along the supply chain. Even if you buy from UK suppliers, they may be importing parts, packaging or materials that are now more expensive. Your costs could rise quietly. Even if the increases are small, they can add up over time and erode your margins.
What you can do:
- Look at setting up a cost tracker for the things you buy and monitor it on a monthly basis. Just a spreadsheet can do the job – if you need help we can help you to set this up.
- Then, review your profit margins and consider whether you need to adjust your own pricing.
Tip: If you haven’t done a cost review in the last six months, now’s the time. We can help you to compare supplier prices or look at your gross margin trends
- The UK May Respond – Which Could Create Opportunities
The UK government has been consulting on whether to introduce retaliatory tariffs. This could mean more changes to the cost or availability of goods, particularly if you rely on imports. But it could also create new opportunities – especially if UK-made goods become more competitive or if others pull out of markets you could move into.
What you can do:
- Look out for new local suppliers who may become more competitive if tariffs rise.
- Explore whether any competitors are stepping back from markets or products you could step into.
- If you manufacture or source items in the UK, consider whether the changing conditions could allow you to promote “locally made” or tariff-free products more effectively.
Tip: Uncertainty often leads to hesitation. If you’re able to act quickly, you might spot growth opportunities that others miss. Stay informed and curious.
- Stay Focused on What You Can Control
There’s a lot of noise and uncertainty and with so much change happening globally, it’s easy to feel like your business is at the mercy of outside forces. While you can’t control tariff decisions or market reactions, you can stay proactive in how you respond.
What you can do:
- Review your cashflow and key costs regularly. Even a simple monthly check-in can help you spot trends early.
- Keep communication open with customers and suppliers so you’re not surprised by any changes.
- Take time to assess where your business is most exposed, whether that’s in pricing, sourcing of materials or services, or customer demand.
Tip: Now is a good time to revisit the basics – know what you spend, what you earn, and how long you could keep going if things got tight. Even simple tracking can give you clarity and confidence.
Final word
While the tariffs may feel far away, their effects could come closer to home quickly. So, it’s an important time to pay attention to what is happening and look out for any early indications that your business could be affected. We are here to help you stay ahead of the curve and make informed decisions.
Do you need help spotting the risks (or opportunities) for your business? Get in touch and let’s talk it through.