If you're a UK business owner trading with the US, you will probably already be very aware of the tariffs that President Trump has put on any goods imported to the US from the UK. Since this is going to affect many UK businesses, the government has just announced a £20 billion extension in financing to support British businesses, like yours, handle the growing pressure of US tariffs.
For many SMEs already feeling the squeeze from supply chain costs, inflation, and international red tape, this could be a much-needed lifeline.
But what does this mean for your business?
The Problem: Rising Tariffs, Rising Costs
The US has put tariffs on everything from raw materials like steel to finished goods, quietly chipping away at profit margins. And for smaller companies without deep pockets or in-house trade teams, staying compliant, competitive, and cost-effective is becoming more difficult.
That’s where this new support package comes in.
The Government’s £20bn Solution
To avoid economic turmoil in the UK, the government has granted UK Export Finance (UKEF) an extra £20 billion in financing. This now pushes UKEF’s total lending capacity up to £80 billion. This could mean for businesses:
- Tariff relief - Get direct financial support to absorb some of the extra costs that come with exporting to the US.
- Export guarantees and credit insurance - Protect your cash flow and reduce the risk of expanding into or trading with the US.
- Support for innovation and local production - Grants and incentives are being made available to help you adapt your supply chain or bring more production in-house.
Why SMEs should be paying attention
Larger companies might be able to weather these kinds of storms, but for SMEs, every penny — and every hour — counts. This package could help in some very practical ways:
- Save on costs - Tariff relief could directly improve your bottom line.
- Grow smarter - With less financial risk, trading in the US could continue to help you bring profits in.
- Future-proof your business - Whether it’s reshoring, reworking your supply chain, or funding product development, this could be the push you need to build something more resilient.
So, what should you do next?
If you’re already trading with the US, now’s the time to get involved. Start by:
- Speak to your accountant or trade adviser - they’ll know where to point you.
- Get in touch with the Department for Business and Trade - they’ll have the latest on how to apply for extra financing.
- Thinking strategically - if you had access to this support, how would you use it to grow or improve your business?
Whether you’re exporting food, goods, or manufacturing parts for machinery, this package could be a game-changer. So don’t wait until the competition gets ahead. Whilst this is not a long-term fix for the impact the US tariffs will have, it will help companies in the short term deal with the price impact on their business
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