The impact of the US tariffs
In recent months, the US has imposed a range of tariffs – particularly targeting imports from China, the EU, and other countries. These sudden trade measures have had disruptive effects on foreign SMEs, who often operate with tighter margins and less flexibility than large corporations.
Policy changes were often rolled out quickly, with minimal lead time, leaving SMEs scrambling to adapt – all whilst trying to meet US expectations for fast and reliable delivery.
The broader trade tensions have driven up freight costs, especially on heavily trafficked routes like Asia to the US. Some suppliers have had to reroute shipments to avoid certain ports or go through more complex customs processes. Tariff-related delays or inspections also caused demurrage fees, warehousing charges, and other unforeseen logistics costs.
Perhaps the most pressing question for any SME is this: who will end up covering these increased costs? For most, absorbing them internally simply isn’t realistic. But passing them on to customers can make their products less competitive. It’s no surprise, then, that this period has been deeply concerning for many businesses. The good news? While the challenges are significant, there are still steps SMEs can take to navigate them more effectively…