A looming trade dispute between the UK and the US is causing deep concern among British small businesses. US President Donald Trump has threatened to impose tariffs of up to 25% on UK goods, a move that could have devastating consequences for companies already struggling with the economic fallout of Brexit and the pandemic.
Martha Keith, the founder and CEO of Dorset-based stationery firm Martha Brook, is one of those facing an uncertain future. Her company, which sells a majority of its products to US customers through platforms like Etsy, has already seen sales drop by 50% since the introduction of earlier tariffs.
“What happened last year had a huge impact on us,” Ms. Keith told The Update Desk. “When I read the news at the weekend, my heart sank again.”
The prospect of further tariffs is a significant threat to the viability of her business and many others like it, compounding the challenges they have already faced. Ms. Keith says the current trade model is “no longer sustainable” and that her company may need to rethink its operations.
Prime Minister Keir Starmer has urged calm, warning that a trade war would “benefit nobody” and could push the UK and the EU into recession. Data shows the US was the UK’s largest trading partner in 2024-2025, accounting for 17.8% of total UK trade.
Geoffrey de Mowbray, chairman of the British Exporters Association, said the tariffs would threaten “years of hard work, travel, and investment” from UK businesses to build transatlantic relationships. He added that the uncertainty makes it “much harder to plan” for smaller companies with tight margins.
Michelle Ovens, chief executive of Small Business Britain, said any further tariffs would “create significant uncertainty” for companies across the country, noting that while just 17% of SMEs export, they account for 44% of the UK’s exports to the US.
As the political tensions escalate, British businesses are being forced to navigate an increasingly treacherous trading environment, with the future of many hanging in the balance.
