By Douglas Grant, Managing Director at Manx Financial Group
Ongoing tariff disputes and shifting regulatory landscapes continue to disrupt global trade. For UK small and medium-sized enterprises (SMEs), these uncertainties can impact export margins, increase input costs, and complicate growth planning. Yet, in volatility lies opportunity. Businesses that are agile and financially prepared can not only mitigate risks but also gain a competitive edge.
Here are five practical ways UK SMEs can adapt their financial strategies in response to global tariff uncertainty:
1. Diversify export markets
Rising protectionism, particularly under a renewed “America First” approach, is reshaping global trade dynamics. Increased tariffs and regulatory barriers threaten UK firms trading with the US, squeezing margins and eroding competitiveness for those heavily reliant on transatlantic exports. However, these same policies are also nudging the UK and Europe closer together, potentially softening the impact of Brexit by increasing UK access to its nearest and already closely aligned trading bloc. Meanwhile, new trading blocs are emerging in response to shifting US policy. In this environment, the UK must play a nimble game, strategically positioning itself with the US, Europe, and Australasia to maintain trade resilience until a new global order takes shape. For SMEs, this means auditing market dependencies, diversifying into regions less affected by US protectionism, such as Southeast Asia, Africa, and Latin America and staying agile with flexible go-to-market plans that can pivot as global policies evolve.
2. Manage currency risk strategically
Currency volatility is often the first shockwave from geopolitical events. A stronger US dollar may support UK export competitiveness but also raise the cost of dollar-denominated imports, such as raw materials, logistics, or technology. To stabilise cash flow, SMEs should consider tools like forward contracts, currency options, or multi-currency bank accounts. Aligning pricing strategies to currency trends, such as invoicing in local currencies or renegotiating supplier terms, can protect margins and reduce planning uncertainty.
3. Restructure and strengthen supply chains
Tensions between the US and China may again disrupt global supply chains. However, this shift could benefit UK firms, as US companies seek alternative suppliers that offer quality, compliance, and reliability. SMEs should reassess their supply chain vulnerabilities and explore options such as nearshoring, multi-sourcing, or holding strategic inventory. Investing in digital supply chain tools, from real-time tracking to predictive analytics, can also enhance agility and resilience during global shocks.
4. Monitor global tax and investment changes
If Trump-era tax cuts and deregulation return, the US could once again become a magnet for business investment. UK SMEs with US operations, or ambitions to expand, should be ready to respond. Regular consultation with tax and legal advisers will be crucial to navigate potential changes in corporate tax rates, deductions, and depreciation rules. With global monetary policy still uncertain, SMEs should also review how tax and investment shifts could affect access to funding and cross-border growth plans.
5. Focus on scalable digital services
Tighter US immigration policies may make physical expansion more difficult, but digital services can still cross borders with ease. If the US economy strengthens under Trumponomics, so too could demand for UK expertise in finance, law, and technology. SMEs in these sectors should double down on scalable, cloud-based delivery models. Investing in cybersecurity, digital infrastructure, and compliance frameworks will ensure services remain competitive, secure, and export-ready, regardless of political developments.
Looking ahead
Tariff uncertainty is unsettling, but for nimble UK SMEs, it can also be a catalyst for smarter strategy and broader horizons. By proactively reviewing financial exposures, managing risks, and investing in adaptability, SMEs can do more than just weather potential shocks: they can build a more resilient and globalised future. Adaptability, foresight, and agility are the currencies of modern commerce. With the right financial and operational strategies in place, UK SMEs have every chance not just to survive the coming storm, but to thrive in its wake.
