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TRUMP’ S AMERICA FIRST TRADE POLICY: HOW UK SMES CAN REMAIN RESILIENT
There’ s been a whirlwind of news, threats and plans on potential US trade policy in recent months. Trump’ s America First Trade Policy is causing global ramifications. Vivek Savani, UK Country Manager at iBanFirst, discusses how UK SMEs can weather the storm and capitalise on new opportunities.
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TO NAVIGATE THIS RISKY TRADE ENVIRONMENT, SMES WILL NEED TO SEEK OUT THE RIGHT SUPPORT TO MANAGE THE COMPLEXITIES OF INTERNATIONAL INSTABILITY.
FTER MONTHS OF uncertainty
A following President Trump’ s inauguration,‘ Liberation Day’ confirmed his America First stance will reshape international trade for the foreseeable future.
For UK-based SMEs, an increasingly volatile operational environment creates uncertainty and risk. As we’ ve seen, tariffs lead to currency instability, disrupted supply chains and inflationary pressures, all of which hinder international economic growth. So SMEs have to be prepared and able to adjust their strategies accordingly. If SMEs do not adapt, they risk facing deeper cash flow concerns and a shrinking customer base.
Among these developments, the UK has made its feelings clear: free and fair international trade is the preferred approach for economic growth. Our research shows that 43 % of Brits would support a trade war with the US, while two-thirds( 62 %) view Trump’ s presidency as detrimental to the UK economy. As the UK-US relationship evolves, now is a good time for SMEs to take stock of their market exposure and implement a proactive approach to minimise undue risk and protect their operations.
Providing financial confidence for SMEs
Protectionist policies, like what Liberation Day formalised, serve to limit market access which stifles growth opportunities. Higher costs for UK imports can reduce demand for goods, impacting the competitiveness of our exports globally.
When the vast majority of UK businesses rely on international trade – whether through global customers, suppliers or manufacturers – this is a real issue. As our survey found, 82 % believe protectionism increases the price of goods, two-thirds( 66 %) believe it increases international tensions and risks conflict escalation, and almost the same number( 62 %) say it creates job losses.
To navigate this risky trade environment, SMEs will need to seek out the right support
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