The current trade landscape in the UK presents a sharp contrast to the uncertainty that followed the Brexit referendum in 2016.
With established trade agreements with both the USA and the European Union, the UK could find itself uniquely positioned to attract businesses that may reconsider their operations in light of President Trump’s threatened 30% tariffs on the EU, which could encourage European companies to relocate or expand in the UK. Could the UK emerge as a significant indirect beneficiary of these tariffs, reclaiming some of the trade and investment lost post-Brexit?
Quote by Aman Parmar, Head of Marketing at BizSpace, a leading provider of flexible workspaces for SMEs.
“Small and medium-sized enterprises (SMEs) now have a unique opportunity to thrive in the UK, particularly in light of the evolving international trade dynamics linked to recent US tariffs on the European Union. The UK currently finds itself in a favourable position, having established trade agreements with both the US and the EU, which allows SMEs to capitalise on a distinctive business environment that has emerged since Brexit.
“The aftermath of the 2016 Brexit referendum saw many businesses shift operations to mainland Europe, leading to initial uncertainties and a decline in exports. However, as of 2025, the prospect of US President Donald Trump’s threatened 30% tariffs on the EU is prompting companies to reconsider their strategies. The potential for these tariffs may incentivise EU businesses to relocate manufacturing to the UK, where tariffs are significantly lower. This shift could reinvigorate the UK’s manufacturing sector, which has considerable spare capacity following Brexit.
“At BizSpace, we have the privilege of working with a diverse range of SME clients throughout the UK, and many have told us that they see this moment as a significant opportunity for growth. With the impending U.S. tariffs on the EU, they are increasingly considering how to reposition themselves to capitalise on potential shifts in the market. We’ve heard from numerous business owners who are eager to take advantage of the resources and support available to them, believing that by embracing innovation and leveraging their unique strengths, they can enhance their competitiveness and thrive in this evolving environment.
“One significant advantage for SMEs in the UK is the availability of various support programmes and funding opportunities tailored specifically for smaller businesses. The UK government and local authorities provide grants, loans and expert advice to assist SMEs with navigating the complexities of starting and expanding their operations. This support is particularly crucial as businesses seek to invest in new technologies, scale their operations or explore new markets amid quickly changing trade conditions.
“The strategic geographical location serves as a gateway to both European and global markets. This strategic advantage allows SMEs to navigate trade barriers more effectively, especially in the context of potential US tariffs on the EU. As companies reassess their operations in light of these tariffs, the UK becomes an attractive base for EU firms looking to maintain access to the US market while minimising costs.
“In the wake of changes after Brexit, the UK is once again emerging as a revitalised landscape for small and medium enterprises. SMEs can harness these advantages, strategically positioning themselves for success in a globalised economy to seize new opportunities while deftly navigating the complexities that have arisen since Brexit. Collectively, these elements foster a positive outlook for SMEs looking to solidify their presence in the UK market.
“Now is the time for SMEs to seize the moment. If you’re a small business owner or entrepreneur considering your next steps, explore the resources available to you, connect with local support networks, and take advantage of the opportunities that the changing landscape presents. Embrace the future of your business in the UK and position yourself for success.”