Seven in ten UK small businesses fear economic impacts from the USA

More than seven in 10 small businesses (77%) say they are fearful that policies from the new US administration could have a ripple effect on the outlook for UK small businesses.

The poll of 255 enterprises revealed that the most significant concern cited by small businesses was the possibility of tariffs on UK exports to the USA (43%).  Many feared what the UK’s trading position would be in the world – with 30% fearing a weakening of the UK’s special relationship with the US and 29% concerned about the UK now finding itself isolated – outside the EU and no longer as close to the USA.

The possibility of increased market volatility impacting the UK was also a major concern and on two counts: 33% were concerned about the impact on UK economic growth forecasts and interest rates, whilst 22% feared the impact on their own trading relationships.

More than one in four small businesses (26%) feared the new US administration placing less importance on climate change and the need for businesses to do their bit to work towards Net Zero targets. This comes at a time when 88% of UK small businesses start 2025 saying they are taking many areas of sustainability more importantly than they did a year ago.

Whilst many small businesses start 2025 with eyes on America, their concerns counter an otherwise bullish domestic outlook for the year ahead. More than eight in ten UK small businesses (81%) are prioritising new initiatives to boost their overall growth prospects for 2025 – with key initiatives including efforts to increase new business sales (43%) and to reduce fixed costs (24%).