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UK entrepreneurs and business owners remain in limbo following the announcement of the trade deal between the US and UK, as the plan to help small and medium enterprises “remains unclear”, according to one UK business organisation.
The agreement announced on Thursday was described by US President Donald Trump as a “landmark economic deal” between the two countries. But, while it included cuts to punitive tariffs on car and steel exports, the ultimate scope of the deal was limited for the UK business sector, since it failed to reverse the flat 10 per cent levy that applies to most goods.
The Federation of Small Businesses, a trade body, said small businesses are reporting “low confidence” as they are forced to carry out “damage control” in the aftermath of the disruption caused by Trump’s April 2 tariff announcements.
Tina McKenzie, policy chair at FSB, said: “We welcome the fact that an initial US-UK economic agreement has been achieved, which is significant in and of itself.
“But with broad 10 per cent tariffs likely remaining in place, we need to see what’s in the plan to boost SME trade — and that remains unclear.”
McKenzie said that small firms have faced widespread disruption since the tariffs came in. “They are dealing with a falling demand for their goods and have had to cut their range — something that’s turning what should be growth into damage control,” she added.
McKenzie’s thoughts were echoed by FSB international affairs director, Lucy Monks, who added it was “difficult” seeing the continuation of the barriers put in place last month with the introduction of tariffs.
Global trade tensions caused the Bank of England to downgrade some of its UK economic forecasts this week. In a speech on Friday, governor Andrew Bailey said: “When I go around the country in the UK, businesses say to me: ‘We are delaying investments because we are just too uncertain about what the world is going to look like’,”.
However, for larger firms the initial deal has been welcomed as a sign of improvement in trade relations with the US, with the British Chambers of Commerce noting that many businesses will meet this news with a “huge sigh of relief,” but acknowledged that a push is needed to assist all sectors.
“This must not be the end of the process; we must continue to push the argument for free and fair trade across all economic sectors and that tariffs are a lose-lose position,” Shevaun Haviland, director-general of the BCC, said.
Andreas Adamides, chief executive of entrepreneur network Helm, was optimistic about the deal. “For UK businesses, this agreement opens floodgates of opportunity previously held back by tariffs and regulatory friction.”
“The removal of customs red tape means British innovation can move more efficiently into the world’s largest economy, creating a powerful current that will lift businesses on both sides of the Atlantic,” he added.
Speaking to workers at the Jaguar Land Rover factory in the West Midlands on Thursday, UK Prime Minister Sir Keir Starmer said this deal was the start of the process. “This is jobs saved, jobs won, but not job done, and our teams will continue to work to build on this agreement,” he said.
