British entrepreneurs launched warnings that the customs duties imposed by US President Donald Trump are directly threatening their profits, as a recent poll revealed that some of them were planning to stop their commercial activities in the United States completely, according to the Financial Times.
A study conducted by the entrepreneur “Helm” and its results published by the Financial Times published that 64% of its members believe that recent customs duties will negatively affect their profits, while one in 5 business leaders think about reducing or ending his operations in the American market.
According to the poll, 13% of the participants reported that they are “very likely” to withdraw from the American market, in reference to a possible and large shift in the working patterns of small companies there.
Fears related to supply and shipping chains
Entrepreneurs shed light, according to the Financial Times, on the high costs of supply chains, the impact of fees on direct products exports and distribution partnerships as the most prominent concerns in light of the change of the scene of the international trade.
“These customs duties create ripples that may turn into waves through the Atlantic commercial relationship,” the Financial Times, adding that these customs duties create ripples that may turn into waves through the Atlantic commercial relationship, “adding:” British entrepreneurs at a crossroads; some of them prove their place, while others are looking for new horizons away from American beaches. “
Adamids stressed that many companies are adjusting their strategies by changing prices, exploring new markets, or developing alternative products, stressing that “the ground of trade between the United Kingdom and the United States is witnessing accelerating transformations.”
More repercussions on the British economy
The results of the “Helm” poll came days after another study conducted by the HSBC bank, which included two thousand British companies, and revealed – as the Financial Times reported – that 66% of these companies expect to be affected by new fees.
For her part, Tina McKenzi, head of policy in the Union of Small Companies, told the newspaper that “the confidence of small companies is already weak, and the customs duties on the British -American trade will increase their pressure strongly.”
She added that the United States is the main market for 59% of the small British exporters, noting that adding new financial burdens to this vital market threatens a basic source of income for thousands of companies.
McKenzi stressed that “export remains one of the most important ways that small companies can support their centers during instability periods, and for this reason negotiations must continue to promote free trade with the United States, the European Union and other countries.”
Alternative strategies and new risks
The “Helm” poll indicated that the current fluctuations pushed 28% of entrepreneurs to start searching for alternative markets, with about 10% already managed to secure new partnerships outside the United States.
“He began exploring alternative supply methods from countries such as India, Malaysia, Cambodia and Turkey to avoid relying on China.”
On the other hand, about a quarter of the participants expressed their adherence to staying in the American market, following the risk relief strategies to counter the uncertainty associated with customs duties.
A third of the participants indicated that they are planning to continue working in the United States in the same approved way before announcing the fees, adopting the “waiting and anticipation” approach.
Hopes hanging on commercial conversations
Companies of various sizes are awaiting the results of the upcoming meeting in Washington, DC between British Finance Minister Rachel Reeves and their American counterpart Scott Besent, to discuss the possibility of a trade agreement between the two countries, according to Financial Times.
It is noteworthy that the American President announced plans to exempt some car manufacturers from fees, and his administration announced last week the exclusion of consumer electronic devices from the “mutual” fees imposed on Chinese imports.
