From shifting global alliances to new domestic regulations, British businesses are facing a complex and evolving landscape when it comes to tariffs, subsidies and trade.
With the percentage of levies seemingly changing by the day in what looks to be an inflamed international affair, the coming months will no doubt bring significant policy changes, both at home and abroad, that could affect everything from procurement costs through to fundamental market access.
For business owners and entrepreneurs who import, export, or receive public funding, these changes are not merely background noise. They represent tangible commercial risk that needs to be carefully managed.
Since leaving the EU, the UK has implemented a new framework for public subsidies through the Subsidy Control Act 2022. This new regime replaces EU state aid rules and places greater emphasis on transparency, fairness and legal challenge.
For businesses, this effectively means that subsidy awards above certain thresholds must be publicly disclosed, and that competitors can now challenge subsidies if they believe they create unfair advantages. This also has the imperative of meaning that recipients must be able to demonstrate that their funding complies with the new principles.
The sizeable shift means there is now a heightened risk of legal challenge or reputational damage if subsidies are not properly assessed and documented. Companies that rely on local authority grants, R&D incentives, or sector-specific funding should review how these subsidies are structured and recorded to ensure they meet the new compliance standards.
Global trade is once again being shaped by fluctuating geopolitical forces, and tariffs are playing a central role as the tension climbs. While the UK has rolled out its own Global Tariff schedule post-Brexit, the international situation remains fluid.
In the United States, potential changes under the second Trump administration, including talk of a flat 10% import tariff, could have widespread implications for UK exporters and companies with US supply chains. Meanwhile, tensions between China, the EU and the US continue to escalate, raising the risk of retaliatory tariffs and new trade barriers, with the US threatening to impose a 245% tariff on Chinese exports to the US.
For UK businesses, this ceaseless uncertainty calls for a clear-eyed assessment of exposure. Supply chains that rely on imported goods, particularly from politically sensitive regions, may be especially vulnerable to rising costs or disrupted timelines. Now is the time to assess whether alternative suppliers, local production, or changes to logistics could reduce risk.
Domestically, the UK government continues to adjust tariff rates and rules of origin under various free trade agreements. These changes may bring benefits, but only if businesses are equipped to navigate the evolving complexities.
Since Brexit, the UK has signed a number of trade deals, including with Australia, New Zealand, and members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (“CPTPP”). However, evidence suggests that many British businesses are not taking full advantage of these agreements.
The reasons are familiar: complex rules of origin, difficult paperwork, and a lack of internal resources to manage trade compliance. For smaller and mid-sized firms, the cost of navigating trade agreements can often outweigh the perceived benefits, particularly if their goods don’t qualify for tariff relief due to component sourcing or manufacturing locations.
However, the cumulative impact of these agreements is significant. Businesses that are able to make use of tariff reductions, regulatory alignment, and simplified customs processes could find themselves in a stronger position compared to less-prepared competitors.
Now is the right time to:
Trade deals are only useful if they’re usable. It may be worth consulting with trade specialists, like your local specialist business advisory group, to assess whether current processes are limiting access to valuable benefits.
Financial support for tariff-affected businesses
Recognising the growing financial strain that global tariff changes can place on smaller businesses, the British Business Bank has announced additional funding through its Growth Guarantee Scheme.
Announced by the Chancellor in April 2025, the scheme has been expanded to provide around £500 million in new lending capacity, specifically aimed at supporting smaller businesses experiencing cashflow difficulties as a result of changing global tariffs.
Delivered via a network of around 50 accredited lenders, the scheme enables borrowing of up to £2 million per business group, offering a 70% government-backed guarantee to reduce lender risk. Finance can be used for a range of legitimate business purposes, including managing working capital, covering rising costs, or adapting to supply chain disruption.
Key features include a wide availability of products, including term loans, overdrafts and asset finance; standard credit and fraud checks by lenders, with all lending decisions delegated to them; and commercial terms, with pricing reflecting the guarantee and associated fees.
Businesses should initially approach their current banking provider or consult the British Business Bank website to identify participating lenders. The scheme complements broader support for SMEs and forms part of the Bank’s strategy to maintain access to finance during periods of economic uncertainty.
This is a valuable option for businesses facing pressure from shifting tariff regimes but who remain commercially viable and in need of short-term financial flexibility.
In light of the changes ahead, businesses should act now to build resilience and ensure compliance. A few practical actions include:
The landscape for international trade and taxation is shifting, and British businesses must stay alert to change. Tariffs, subsidies and trade agreements are no longer abstract policy tools—they are active forces shaping competitiveness and growth.
While some businesses will be caught off guard by new restrictions or compliance issues, others will use this period to invest in their processes, rethink their sourcing strategies, and take fuller advantage of trade opportunities.
As always, early preparation and informed decision-making are key. The cost of inaction may not be immediate, but over time it will be felt in margins, market share, and operational flexibility. For specific advice tailored to your business, get in touch with Duncan & Toplis today.
