Stay agile and seize opportunities to thrive in the new trade world

The tariff increases being implemented by the US government are rewiring trade relationships around the world.

In the UK, Kier Starmer’s government has secured a deal for a 10% baseline tariff to apply to most goods imported into the US. There are some levies specific to companies in particular industries: UK automotive exports are 10% for up to 100,000 cars annually and aerospace products are exempt. Discussions are ongoing regarding steel and aluminium tariffs.

For other countries, the tariff rates remain in flux. For Mexico, for instance, current reports suggest tariffs could be 30%. China, meanwhile, has negotiated a fragile trade truce with the US, that saw tariffs imposed on goods from China lowered from 145% to 30%. The truce between the two countries is due to end on the 12th of August, although the two countries have reportedly returned to the negotiating table.

In the meantime, companies are navigating this complicated web of trade deals and associated uncertainty. While undoubtedly some are pausing investment and exports to the US, we’re also seeing many businesses take proactive steps to keep their supply chains in motion and even find new partners.

The watchword here is agility. That means being prepared to seize any opportunities to export more to the US. To take but one small example, UK-based cheesemakers should utilise the opportunities that will arise from EU-based firms facing higher tariffs; British cheddar is just one example of a quality UK food that could gain buyers stateside.

Agile UK exporters are also shifting focus beyond the US and EU to seek out new markets and gain a competitive advantage. Remaining open to new platforms and non-traditional trade routes can strengthen supply chain resilience and sales.

In this fast-moving environment, staying finely attuned to global events is essential. Tariff policy is changing fast. So, it is essential to monitor developments closely and act quickly when opportunities emerge. Watch closely what’s finally agreed with major trading partners like Canada and Mexico. Supply chain analysis is part of this, with an eye to alternative sourcing and using automation to offset cost pressures.

Communication is key too. We see plenty of examples of companies that are engaging more with credit partners, whether they’re suppliers, customers, or insurers. In some cases, they are challenging the norm by opening up discussions to renegotiate contracts. Could you do the same?

This leads us to credit insurance. At a time of higher risk, more and more businesses are exploring how the cover can safeguard their cash flow and provide stability in uncertain trading conditions.

The crucial point, however, is to remember that credit insurance doesn’t just protect against non-payment, important as that is in these markets. It also serves as a powerful risk management tool. It can provide access to specialist expertise through underwriters with deep knowledge of key sectors and markets.

So, if you have a trade credit insurance policy, then use the maximum value of it by keeping your finger on the pulse and speaking with your underwriter as much as you can. In risky, unpredictable markets, extra insight and knowledge can provide a lifeline.

Read our white paper to find out more about the impact of US tariff increases on your business.

This article was written during the week commencing 28 July 2025 and reflects the latest available information at that time.