Finding opportunity in a shifting trade landscape
Published: 14 April, 2025
Trump’s decision to impose tariffs on UK goods has complicated an already challenging transatlantic trade landscape. Specifically, as we are all aware a 10% tariff has been applied to all UK exports, with a more substantial 25% tariff targeting the automotive sector. These measures have prompted widespread concern across key industries, particularly in automotive manufacturing and steel production.
In response, Prime Minister Keir Starmer has pledged to support affected sectors, with a focus on reducing global trade barriers and pursuing a broader economic partnership with the United States. The UK government has also engaged with France, Germany, Canada, and the European Commission to coordinate a wider international response.
While these diplomatic efforts are important and ongoing, UK manufacturers must also take proactive steps to withstand this period of economic uncertainty and trade friction. In the face of rising costs and disrupted access to international markets, resilience and adaptability are now essential.
Diversifying export markets is a practical first step. By reducing dependency on the U.S. and expanding trade with emerging markets or Commonwealth nations, firms can buffer the impact of tariff-related disruptions. Government-led initiatives to improve market access in Asia-Pacific and Latin America may provide new avenues for growth.
Investing in supply chain resilience is also key. Manufacturers should consider near-shoring or dual-sourcing strategies to reduce exposure to geopolitical shocks. Digital tools and supply chain analytics can help identify vulnerabilities and manage risk more effectively.
Moreover, innovation must remain central. Investing in automation, low-carbon technologies, and R&D not only boosts productivity but may qualify businesses for government grants or tax relief schemes designed to support industrial modernisation.
Collaboration between industry bodies and policymakers will be critical. Clear communication of sector-specific needs can help shape targeted support measures, such as temporary subsidies or relief on customs duties. Business leaders should engage with trade associations to amplify their voice and access shared resources.
While the broader resolution will depend on high-level diplomatic negotiations, UK manufacturers need not wait passively. By adapting to shifting dynamics and leveraging available tools, they can not only survive this turbulent period but lay the groundwork for long-term competitiveness.
The road ahead may be uncertain, but resilience, innovation, and a global outlook will be essential to staying competitive.
