A recent study has revealed businesses in the South West of the UK have taken the brunt of the United States’ new trade tariffs.
Last week, US President Donald Trump announced an increase in tariffs for traders to the US worldwide, with the UK being hit by the blanket tariff of 10%.
Centre for Cities conducted research showing nearly £1bn of goods were exported to the US from Bristol and South Gloucestershire alone in 2022. The South West is mostly known for its exports of manufactured goods, primarily aerospace goods.
The company’s Chief Executive – Andrew Carter – warned the tariffs would cause a huge impact, as around 12% of the total goods Bristol exports go to the US.
The UK’s largest US export is cars. It exports £9.0bn value of cars to the US annually. Larger car manufacturing businesses – such as Jaguar Rolls Royce, will feel the brunt of the tariffs.
Emerging manufacturing businesses, looking to expand have felt stunted by the tariffs. Chris Frappell, managing director of Tru-Tension, a Southwestern maintenance company for motorbikes, has stated that the tariffs are likely to have a profound effect on his business. Ultimately, it is increasingly likely many small- and medium-sized businesses (SMEs) owners will be weighing up price increases.
For SMEs interrupted by the US’s new tariffs, it may be difficult to decide how to react to these developments in trade. At AJL Finance, we specialise in manufacturing business loans, and can help you execute the financial impact of your next business move.
