One in three UK companies exposed to US tariff risk: BCC

A third of UK businesses have said they are exposed to the threat of new US tariffs, with a significant share already taking action, according to a survey by the British Chambers of Commerce (BCC).

In a survey of nearly 350 companies conducted over a 24-hour period between January 19 and 20 by the Insights Unit of BCC, around 33 per cent of respondents said they were exposed to the tariff threat. Meanwhile 21 per cent said it was too early to judge and 46 per cent reported no exposure.

“The threat of a new tariff bombshell from the United States is bad news for UK businesses, consumers and the wider economy. Our data shows some firms are already taking action following Saturday’s statement from the US Administration,” said William Bain, head of trade policy at the British Chambers of Commerce.

Among exposed firms, 55 per cent acknowledged the risk but have not yet altered plans. However, 33 per cent are already acting, with 17 per cent undertaking contingency planning and 12 per cent preparing strategic shifts to reduce reliance on the US market. A smaller 4 per cent have begun operational adjustments, while 12 per cent expect no change, assuming the tariffs will not be implemented.

Based on current trade flows, UK businesses could face a  £6 billion (~$8.06 billion) hit by the end of January if tariffs take effect, rising sharply to £15 billion (~$20.15 billion) by June.

“Trade delivers economic growth, and the way forward for successful transatlantic commerce is through reducing tariffs, not adding more costs. We were pleased to hear the Prime Minister focus on the SME impact, during his press conference on Monday.  Ministers must look to support UK businesses through these turbulent times, while prioritising the full implementation of Economic Prosperity Deal,” Bain suggested.

A third of UK firms are exposed to the threat of new US tariffs, according to a survey by the British Chambers of Commerce.
Of nearly 350 companies surveyed, 33 per cent reported exposure, while a third of those affected are already taking action.
If imposed, the tariffs could cost UK businesses £6 billion (~$8.06 billion) by late January, rising to £15 billion (~$20.15 billion) by June.

Fibre2Fashion News Desk (HU)