UK entrepreneurs are raising urgent concerns over the impact of Washington’s aggressive tariff measures on small businesses, according to a new survey conducted by the network Helm. With 64% of its members predicting a negative effect on their bottom lines and one in five considering withdrawal from the US market, the future of UK-US trade relations looks increasingly uncertain for small exporters.
The survey reveals that 13% of UK small businesses are “extremely likely” to halt operations in the United States, highlighting the deepening anxiety among companies that have traditionally depended on transatlantic trade for expansion and growth. Entrepreneurs cited supply chain costs, direct product exports, and distribution partnerships as areas most affected by the recent policy changes.
“These tariffs are creating ripples that could become waves across the Atlantic trade relationship,” said Andreas Adamides, Chief Executive of Helm. “UK entrepreneurs now find themselves at a critical juncture, with some adapting their strategies while others contemplate an exit from the American market altogether.”
The findings align with data from a broader survey conducted by HSBC, which polled 2,000 UK companies ranging from startups to large corporations. The HSBC survey showed that 66% of businesses anticipated some form of negative impact from the US tariffs, reinforcing the scale of the economic threat looming over UK exporters.
Tina McKenzie, Policy Chair of the Federation of Small Businesses, emphasized that confidence among small businesses is already fragile. “Tariff hikes on UK-US trade will hit small firms hard,” she warned, noting that the US is the leading market for 59% of UK small exporters. Adding costs to this critical revenue stream could cripple thousands of enterprises that rely on exporting to survive and expand.
McKenzie also stressed that exporting remains one of the few strategic levers available to small businesses during periods of domestic uncertainty. That is why she insists negotiations for free trade agreements with the US, EU, and other global markets must remain a priority.
The disruption is already being felt across industries. Hunter Luxury, a leading UK packaging manufacturer, has reported production halts in its Chinese supply chain as a direct result of the tariffs. Mike Banister, CEO of Hunter Luxury, explained that shipments are now sitting indefinitely in warehouses while US port congestion grows worse. “In the medium to long term, our operational strategies will need complete reassessment,” Banister noted, adding that “uncertainty surrounding future tariff escalations is even more damaging than the immediate costs.”
In reaction to the chaos, 28% of Helm members are actively exploring alternative markets outside the US. Some businesses have already secured new partnerships in regions less impacted by American tariffs, including India, Malaysia, Cambodia, and Turkey. Mark McCormack, co-CEO of party supplies company Talking Tables, confirmed that his team has diversified their supply routes to avoid risks tied to China-US trade volatility.
New tariffs spark fear among British small businesses with serious risks to US market operations
Despite the turmoil, almost 25% of respondents plan to maintain their presence in the US market. These businesses are adopting mitigation strategies such as renegotiating supply contracts, adjusting pricing models, and hedging against future tariffs. A third of respondents have adopted a “wait-and-see” approach, betting that political negotiations could eventually ease tensions.
On the political front, there has been some relief. Last week, the US administration announced exemptions for consumer electronics and indicated that carmakers would also be spared from certain tariffs. Yet the broader uncertainty around trade policies continues to cast a long shadow over UK-US business relations.
Hopes now rest on potential breakthroughs during upcoming diplomatic meetings. On Friday, UK Chancellor Rachel Reeves is scheduled to meet her US counterpart Scott Bessent in Washington DC to discuss a possible framework for a UK-US trade agreement. Small business advocates are pushing for rapid progress, warning that without clear paths to free trade, entrepreneurial activity could nosedive on both sides of the Atlantic.
Experts say the stakes are unusually high because small businesses account for more than 50% of UK private-sector employment and contribute a significant share to the country’s GDP. A sustained drop in transatlantic exports would not only hurt entrepreneurs but also have ripple effects across local supply chains, service providers, and financial institutions.
According to Financial Ports, an independent analysis platform, market volatility linked to tariff wars is also pushing investors to reevaluate risk models, particularly for SMEs heavily exposed to US markets. Some entrepreneurs are already looking at Latin America, Southeast Asia, and even Africa as alternative growth regions, although the immediate transition costs could be substantial.
Critics argue that tariff-based trade strategies often fail to deliver the intended domestic benefits while creating collateral damage for small exporters. They point to historic examples where aggressive tariffs led to supply chain disruptions, inflationary pressures, and retaliatory measures that ultimately hurt domestic consumers and businesses alike.
The question remains whether the new wave of tariffs will force a recalibration of UK business strategies or trigger a broader policy rethink on both sides of the Atlantic. For now, UK entrepreneurs are bracing for impact, innovating where possible, and hoping that cooler heads will prevail before irreversible damage is done to one of the world’s most valuable bilateral trading relationships.
