February 2025
By Account Academy
Donald Trump’s presidency is reshaping global trade, forcing UK SMEs to navigate an unpredictable yet potentially lucrative era. As post-Brexit Britain recalibrates its trade priorities, Trump’s policies are creating both opportunities and challenges that demand strategic adaptation. With UK exports to the EU having declined by 15% in 2023, per the Office for National Statistics (ONS), businesses are urgently seeking alternative markets, and the US is emerging as a critical battleground.
Trump’s commitment to extending corporate tax cuts at 21% has bolstered consumer spending, providing an opening for UK firms targeting affluent American buyers. British luxury brands, premium food exporters, and boutique manufacturers have already capitalised, with the British Chambers of Commerce reporting a 14% rise in US orders since 2024. Meanwhile, Trump’s rollback of Biden-era green subsidies has redirected investment towards UK clean energy firms, particularly in wind and hydrogen technology, reinforcing Britain’s role as a global leader in sustainable innovation.
The EU’s increasingly strained relationship with Trump is also playing to the advantage of UK businesses. His imposition of tariffs on €6.4 billion worth of EU goods, including French wine and German machinery, has led American importers to seek British alternatives. Yorkshire’s textile manufacturers, for example, are stepping in where Italian leather suppliers, burdened by 15% tariffs, are losing ground. The UK’s defence sector is another beneficiary, with Scottish shipbuilders securing an 18% increase in US contracts following Trump’s persistent criticism of NATO funding structures.
However, the risks for UK SMEs are significant. Trump’s intensifying trade war with China has disrupted shipping routes, inflating costs for businesses dependent on Asian materials. The impact is particularly severe in the electronics, automotive, and manufacturing sectors, where supply chain fragility is driving firms to seek domestic or regional alternatives. Cornish lithium miners are now supplying UK battery startups, demonstrating a shift towards localisation. At the same time, Trump’s stricter H-1B visa caps are making it harder for UK tech firms to recruit talent from overseas, exacerbating an already competitive labour market.
Adapting to these changes requires UK SMEs to be proactive and strategic. Localising supply chains, investing in automation, and leveraging government support are key steps to mitigating risks. The Department for Business and Trade’s (DBT) Export Academy has trained over 3,000 SMEs in US compliance since January, helping firms navigate the complexities of American regulation and market entry. Businesses are also increasingly using AI-driven market analytics to identify high-growth US states, such as Texas, where the energy sector presents lucrative opportunities.
For UK SMEs, the current landscape is defined by both volatility and potential. Trump’s policies demand bold decision-making, but those willing to engage with the shifting trade environment are already seeing tangible rewards. By focusing on market intelligence, fostering transatlantic partnerships, and strategically positioning themselves within the US economy, UK firms can not only weather the uncertainty but also thrive in a new era of global commerce. For more details on the impact of Trump’s trade tariffs on UK SMEs, read our article.
At Account Academy, we provide valuable insights and support to UK SMEs, helping them navigate these complex trade dynamics and seize emerging opportunities. Our expertise ensures businesses stay informed, competitive, and ready to adapt to the evolving global market.
