In response to the recent imposition of tariffs by US President Donald Trump on countries worldwide, affecting products exported to America, UK firms are preparing for the repercussions. The UK is set to face 10% tariffs as part of this new trade policy. Companies across England, Scotland, Wales, and Northern Ireland are bracing for the impact on their business operations due to these tariffs.
Scotch whisky makers, heavily reliant on the US market which accounts for £971 million in annual exports, are particularly concerned about the tariffs. Anthony Wills, the owner of Kilchoman distillery on Islay, expresses disappointment at the blow to the industry. Despite this setback, he remains determined to maintain prices for American customers by absorbing the additional costs. The Scottish Whisky Association estimates that previous tariffs in 2019 resulted in a loss of £600 million in sales for the industry.
Meanwhile, in Wales, companies like Tomoe Valve face uncertainty as their products, crucial in multiple global projects, are subject to potential tariffs. Denise Cole, the financial director, remains cautiously optimistic, acknowledging the protectionist approach by President Trump while expressing confidence in her company’s unique offerings. She highlights concerns over domestic policies affecting business costs, such as increased employer National Insurance Contributions, impacting operational decisions like hiring additional staff.
The automotive sector, a significant contributor to UK exports, is also at risk due to the new tariffs. Barkley Plastics, a supplier to major car manufacturers, fears the negative impact on the industry. Managing Director Matt Harwood emphasizes the precarious situation faced by smaller suppliers like his company due to fluctuating demand and existing challenges. The potential decline in car production volumes raises concerns about job losses and business closures within the automotive supply chain, adding to the economic uncertainties posed by the tariffs.
In Northern Ireland, businesses like Nomadic are evaluating the consequences of the tariffs on their trading relationships with the US. With a substantial portion of their sales attributed to the American market, companies are bracing for potential setbacks. Peter McAuley, founder of Nomadic, acknowledges the challenges ahead for his watch business, hoping to navigate through the uncertainties while maintaining optimism about the future trading prospects between Northern Ireland and the US
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