Even based in the UK, where average tariffs are still relatively low (presently 10% on most goods but 25% on cars), there’s a growing worry about supply chains, rising costs, and a general dip in business confidence as a result of the Tariffs War.

So how can your business respond?
Here’s a simple breakdown of 7 things to watch out for — and what you can do to stay one step ahead of what’s happening.

1. Falling Business Confidence Could Hit Your Sales

When markets wobble and uncertainty rises, businesses and people spend less, not just on big stuff, but even on the more regular and everyday purchases.

What you can do:

• Double down on customer retention: Think flexible options, smaller free delivery quantities, special promotions — whatever keeps orders coming in.
• Show your value clearly: Make it obvious why your product or service isn’t just a “nice-to-have,” but an essential.
• Review your sales mix: Are you leaning heavily on a few clients or market sectors? Time to spread the risk and increase your customer base and/or grow existing customers with loyalty promotions. Look at new markets.
• Key Advice: Analyse your last 6 months' sales. Look for any trends, order slowdown, reduction in average order value, new market opportunities, new routes to market etc. Address these emerging trends. Now is the time to build a cash buffer while you can.

2. Costs May Be Increasing

Your suppliers might be importing parts or materials that are suddenly pricier and so they are having to increase their prices and that can quietly chip away at your margins and in turn your profits.

What you can do:

• Track your costs weekly: A simple spreadsheet works, we can help you set one up if needed.
• Review your pricing: Don’t be afraid to tweak your prices to customers if margins are being squeezed.
• Key Advice: Have you completed a supplier or margin review recently? Now’s the time to look at existing v. new suppliers and if necessary increase your prices in line with market pricing.

3. Are Your Customers Feeling the Pinch Too

Even if you’re not being immediately and directly affected, your customers might be. You could start seeing smaller and more infrequent orders, delayed projects and order cancellations, or requests for longer payment terms.

What you can do:

• Talk to your top clients: A quick check-in can reveal challenges early and it shows you care.
• Adjust your offer to them based on their needs: Stay flexible to support customers through any bumps.
• Key Advice: Pick your top 20 customers — arrange a meeting with them so that you can understand their problems and let them know what your plans are to address these issues. Then let all your customers know what you are doing using sales calls, direct or by phone and back these up with personalised emails.

4. Time to look at your Supply Chain Network

Your suppliers are also under pressure, they could be suffering rising costs, delays, and their own supply chain headaches. These could hit them and you hard so it’s important you understand and know what’s happening.

What you can do:

• Check your supplier sources: Find out where your top suppliers get their goods from and if it’s feasible and worthwhile go directly to source.
• Build a Plan B: Line up alternative suppliers before you actually need them.
• Key Advice: Don’t wait for a crisis or things to happen. Meet with your suppliers as a matter of urgency and ask what troubles they envisage over the next 12 months and what challenges they see ahead. Then act on this intel.

5. Global Supply Chains Are Shifting

The trade war between the US, China, and others could redraw global supply routes, meaning some goods might get harder (or more expensive) to source.

What you can do:

• Audit your key stock and equipment: Are there critical items that would be tough to replace? If so put together a replacement plan with dates etc
• Consider buying early: If you think prices might rise, investing now could save you money and lost sales later.
• Key Advice: If you rely on imports directly or indirectly, ask about forward ordering at current prices with guaranteed delivery.

6. The UK Could Join the Tariff Party

The UK government is weighing up its own strategy on tariffs with decisions expected in April and May 2025. This could shake up sourcing, pricing, and opportunities for your business.

What you can do:

• Be cautious with long-term contracts: Locking into prices now could backfire later.
• Explore local options: UK-made goods might soon have a competitive edge over present imports for all sorts of reasons. Start now to find alternative suppliers based in the UK and Europe.
• Look for gaps in the market: If competitors start to get affected could you step in. Look at cashing in on supply gaps.
• Key Advice: “Locally made” and “tariff-free” could become huge selling points worth thinking about in your promotional messaging.

7. Focus On What You Can Control

Tariffs and global politics might be out of your hands, but how you run your business isn’t. Stay focussed on key metrics and decision making.

What you can do:

• Keep a close eye on cashflow and costs: A simple monthly check is worth its weight in gold.
• Stay connected: Regular chats with customers and suppliers mean fewer nasty surprises.
• Know your exposure points: Understand where your business is most vulnerable and monitor those points.
• Key Advice: Even the basic tracking of things like stock, sales income,  business expenses, cash reserves and debtor days can give you serious peace of mind moving forward. Watch out for customers with rising debt levels and late payment.

Summary

Even if the tariff battles feel to you like its something that is happening “over there,” the impact could hit closer to home than you think. And all these changes will happen very quickly, a lot faster than other business effects like a recession so stay alert.

And the good news? By staying alert, flexible, and proactive, you’ll put yourself in the best possible position not just to survive, but maybe even to thrive. And if you need help spotting risks (or opportunities) for your business or just planning your way through what is happening get in touch, we’d love to help you work through what is going to be challenging times for most businesses. If you need our help call us on 01482 772261 or email info@kaizengroup.uk for a free consultation visit.

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