UK business groups have warned that new import tariffs announced by US President Donald Trump could have severe consequences for British exporters, including equipment manufacturers.
The measures, which introduce a 10% tariff on all UK goods imported into the United States and a 25% rate on steel, aluminium and cars, are expected to disproportionately affect small and medium-sized enterprises (SMEs) and sectors with significant US exposure.
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The Federation of Small Businesses (FSB) said the policy will be a “major blow” to SMEs already struggling with weak growth in the domestic market. Around 59% of UK small exporters sell goods into the US, according to FSB data.
Tina McKenzie, the FSB’s policy chair, said the new tariffs “will cause untold damage to small businesses trying to trade their way into profit while the domestic economy remains flat”, adding that government support may be necessary to prevent business failures.
The Confederation of British Industry (CBI) echoed these concerns, describing the tariff package as “deeply troubling”. CBI chief executive Rain Newton-Smith urged the UK Government to respond calmly, warning that retaliatory measures would increase supply chain disruption and reduce investment.
Trade analysts also expect affected exporters to reassess the viability of US markets. Emma Rowland, trade policy adviser at the Institute of Directors, noted that the US remains the UK’s largest single trading partner and a key destination for exports from sectors such as automotive, chemicals, pharmaceuticals and whisky.
“Exporters to the US will be forced to review the viability of the US as a destination for their goods,” Rowland said. “Alternatively, they may well have to reduce their profit margins to remain competitive.”
JCB responds with major US investment
Construction equipment manufacturer JCB has responded to the tariffs by accelerating plans to expand its production capacity in the United States. The firm confirmed it is doubling the size of its forthcoming plant in San Antonio, Texas, from 500,000 square feet to one million square feet. The $500m facility is expected to begin operations next year and employ up to 1,500 people.
The new factory will produce Loadall telescopic handlers – JCB’s top-selling product in North America – as the company shifts more of its production base closer to its key export market.
JCB has been manufacturing in the US for five decades and currently operates a plant in Savannah, Georgia, which has been in use for 25 years and employs approximately 1,000 workers.
Commenting on the impact of the new tariffs, JCB CEO Graeme Macdonald said: “In the short term, the imposition of tariffs will have a significant impact on our business. However, in the medium term, our planned factory in San Antonio will help to mitigate the impact.”
JCB Chairman Anthony Bamford added that the move reflects a long-term shift in the company’s strategy: “President Trump has galvanised us into evaluating how we can make even more products in the USA, which has been an important market for JCB since we sold our first machine there in 1964.”
The company confirmed that the tariffs will affect its UK-to-US exports in the near term, but said its US investment plans were already underway prior to the announcement. JCB purchased the San Antonio site in 2023 to support North American demand.
