The imposition of new US tariffs is causing waves that extend far beyond American borders. When you are working with smaller owner-managed businesses (OMBs), understanding and proactively responding to these changes is critical.

In her recent webinar, How US Tariffs Could Affect Your Smaller UK OMB Clients, Kirsty McGregor explained that international trade is experiencing a period of transition. With recent changes to US tariff policies under President Donald Trump leading to shifts in global trade dynamics. As countries respond with various measures, including new tariffs, temporary pauses, and legal reviews, businesses and markets are closely monitoring the evolving situation.

However, even as market reactions have calmed, the long-term implications are becoming more apparent. The World Bank and OECD have both downgraded global growth forecasts for 2025, warning of the weakest non-recessionary growth since 2008.

Why UK OMBs Should Care

Although large corporations may be the immediate casualties of global trade wars, their supply chains often extend deep into the small business ecosystem. UK OMBs may not be directly importing or exporting, but if their customers or suppliers do, they are still at risk.

The SME sector is particularly vulnerable due to what Kirsty calls the “SME time lag”—a delay in both the awareness of and reaction to macroeconomic changes. During the 2008 financial crisis and the COVID-19 pandemic, small business lending and insolvency rates lagged significantly behind those of large corporations. This means the effects of current tariff shifts may not become fully visible in the SME space for months or even years.

Practical Impacts Already Emerging

Take Jaguar Land Rover, for instance. On the day of the new US tariffs, they halted exports to the US. By May, the ripple effect had led to a 9% decline in vehicle output and a 68% drop in commercial vehicle production. OMBs supplying into these sectors could soon feel the strain.

Similarly, businesses relying on Chinese or European components may be hit by tariffs—even if they’re based in the UK—due to rules of origin and supply chain transparency issues.

How You Can Support Your Clients

Kirsty outlined a practical approach for accountants to help clients weather the uncertainty:

1. Segment Your Client Base

Identify which clients are:

• Direct importers/exporters
• Indirectly affected via supply chains
• In high-risk sectors like agriculture, food production, textiles, and engineering

2. Communicate Clearly and Often

Use webinars, blogs, email updates, and one-on-one meetings to inform clients about the potential impact of global trade developments. Many business owners won’t seek help proactively, so your outreach is vital.

3. Support Strategic Planning

Encourage scenario planning with multiple financial projections (best, base, worst cases). Help clients consider funding needs and establish financial resilience.

4. Focus on Operational Resilience

Encourage clients to:

• Audit their supply chains and customer bases
• Reassess pricing and margins
• Evaluate new markets (e.g., exporting)
• Maintain strong cash flow discipline

5. Embrace the Role of Business Advisor

Move beyond compliance. Use this opportunity to position yourself as a trusted strategic partner who can guide clients through uncertainty.

Learning from the Past

Kirsty shared that businesses that took early, strategic action during the 2008 crisis grew 17% during the downturn and continued to outperform post-recession. In contrast, businesses that hesitated never caught up.

Exporting as a New Opportunity

With global trade routes shifting, exporting could become a viable growth path for some clients. Encourage them to explore resources like:

• The UK Export Academy
• British Chambers of Commerce

These organisations can provide guidance, introductions, and even grant-funded support.

Tariff policies may be politically driven, but their impacts on businesses are very real. For accountants, this is not just a compliance issue; it's a unique opportunity to help clients survive and thrive.

Start by segmenting your client base, offering relevant insights, and positioning yourself as the strategic advisor they need in turbulent times.

For the full webinar, please click here.

In this course Kirsty McGregor covers the following topics:

• The latest situation
• Research from previous trading shocks
• The potential impacts of disruption in the global trading markets
• Identifying & measuring the risk for UK small businesses
• Maximising the opportunities – for your clients and for you

The contents of this article are meant as a guide only and are not a substitute for professional advice. The author/s accept no responsibility for any action taken, or refrained from, as a result of the material contained in this document. Specific advice should be obtained before acting or refraining from acting, in connection with the matters dealt with in this article. The information at the time of publishing was accurate and could be subject to final changes.