• 62% of UK firms with trade exposure to the USA say they will be negatively impacted by US tariffs, compared to 41% with no exposure
• 32% of firms with trade exposure to the USA say they will increase prices in response to the tariff
• 44% of firms with exposure to the USA say the UK should seek to negotiate a closer trade relationship with the USA, and 43% want closer trade with other markets
• Just under a quarter (21%) think the UK should impose retaliatory tariffs
A snap poll, by the British Chambers of Commerce award-winning Insights Unit, of more than 600 business has revealed the extent to which UK firms expect to be hit by US tariffs.
Using its unique access to companies in the Chamber Network, the research was rapidly carried out between 10am on Friday and 4pm on Saturday as news emerged of retaliatory action by China.
It showed that 62% of UK firms with trade exposure to the USA are taking a hit from the tariffs. Looking at the breakdown, 20% report a significant negative impact, 42% report some negative impact, 16% report no impact, 5% report some positive impact, and 2% significant positive impact.
The survey also showed that 40% of firms considered the 10% tariff to be better than they had been expecting.
Alongside increasing prices, 15% said they would seek alternative suppliers, while 13% said they expected to absorb the costs. Around a third (36%) said they would take no action at this time.
This is in contrast to firms without exposure to the USA, 72% of whom said they would not take action.
