As President-elect Donald Trump’s inauguration approaches on January 20, UK businesses are being urged to prepare for potential supply chain disruptions and increased trade costs as a result of expected tariff increases.
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According to Matthew Clark, international trade partner at BDO, Trump’s return to the White House represents a pivotal moment for global trade, with proposed tariff increases set to impact businesses around the world, including those in the UK.
While Canada, Mexico and China have been identified as prime targets for significant tariff increases, Trump’s trade policies could also see tariff increases of 10% to 20% on imports from other countries, including the UK. Some of these changes could take effect shortly after the inauguration, while others may require congressional approval and face potential challenges from the World Trade Organization.
“The imposition of tariffs by the United States could lead to retaliatory measures from other jurisdictions,” Clark warned. “UK businesses will need to understand and prepare for these changes, which may result in higher costs, administrative burdens and increased tax complexity.”
To overcome these uncertainties, UK companies exporting to the US should take proactive steps, including:
- Review commodity classification to ensure compliance with evolving trade regulations.
- Verify the country of origin of goods exported to the United States to avoid unexpected customs penalties.
- Evaluate the implications of transfer pricing to understand the financial impact on transactions involving goods imported into the United States.
- Re-evaluate supply chains by considering alternative sources and manufacturing locations.
A recent BDO survey revealed that supply chain disruptions are already among the top challenges facing UK businesses in 2025. With uncertainty emerging over future US trade policies, Clarke expects mitigating supply chain risks to become a key priority for businesses In the UK all year round.
With the potential for higher tariffs, trade complexities and retaliation, UK businesses must act now to ensure they remain flexible and adaptable in an evolving global trading environment.
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UK businesses warn of supply chain disruptions, says BDO appeared first on Air Cargo Week.
