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      The recent announcement by the US administration to impose global trade tariffs will have a significant impact on the global economy – and businesses in the North West of England are certainly not immune. With a baseline 10% tariff on many UK exports and a flat 25% tariff on all foreign car imports to the US, these changes are set to reshape trading dynamics and pose significant strategic challenges for local firms.

      For businesses – especially those involved in manufacturing, automotive, engineering, and advanced materials – the news couldn’t come at a more crucial time. The region is a key player in UK exports, with strong ties to international markets, particularly the US. From car makers and aerospace suppliers to pharmaceutical and precision-engineering firms, the region’s global reach is both a strength and a source of potential vulnerability under the new rules.

      While the tariffs may feel like uncharted territory for some, for many UK businesses, there’s a distinct sense of déjà vu. The experience of navigating Brexit – with its complex supply chain shifts, new customs procedures and global trade recalibrations – has given UK companies a crash course in how to react quickly to sudden trade changes.

      Daniel Head
      Daniel Head

      Partner

      KPMG in the UK

      This could prove to be a real advantage. Businesses that adapted effectively to post-Brexit challenges may now find themselves better prepared to act decisively, spot early warning signs, and restructure accordingly.

      UK goods exports to the US now face a new flat 10% tariff. This is comparatively modest against the tariffs imposed on other countries – some of which face rates of up to 54% – but it could still dent margins and reduce competitiveness.

      More concerning for the North West is the 25% tariff on all foreign car imports to the US. Given the region’s importance to the UK automotive sector – with key manufacturers, component suppliers, and logistics firms based here – this poses a significant threat to export volumes and jobs.

      Other UK exports likely to feel the pinch include pharmaceuticals, medical devices, and industrial machinery – all of which have strong representation in the North West. Businesses involved in global supply chains will also need to monitor the impact of tariffs on imports from heavily targeted countries like China, Vietnam, Mexico and Canada, which may feed back into UK operations.

      Beyond trade itself, the broader economic impacts can’t be ignored. A stronger US dollar, combined with global uncertainty, could weaken the pound, raising import costs and potentially increasing inflation in the UK. Businesses operating in the US or reliant on US investment may face volatile revenue streams, delayed project timelines, or tougher financing conditions.

      The key to navigating this challenge is agility.

      Here are the practical steps businesses across the North West should be considering right now:

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      Stay Alert and Informed

      The tariff situation remains fluid, with further changes likely. Leadership teams should stay plugged into government updates, sector bodies, and trade data platforms. Understanding how specific products and materials are affected is vital to informed decision-making.

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      Review Your Supply Chain

      End-to-End: Now’s the time to assess supply chain vulnerabilities. Map your full supply chain, including second and third-tier suppliers. Identify where you may be indirectly exposed to the higher tariffs on goods from countries like Mexico or China. Look at whether you could pivot to sourcing from countries with more favourable trade terms. Consider reshoring or nearshoring options to improve resilience.

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      Revisit contracts

      Scrutinise supplier contracts for terms related to pricing, tariffs, and supply disruption. If necessary, renegotiate contracts to share tariff burdens or introduce new clauses that offer greater flexibility. Consider force majeure clauses in light of these new trade barriers.

      Explore tariff mitigation tactics

      There are several ways to reduce your tariff exposure:

      • Tariff engineering

        Adjust product configurations or sourcing to qualify for lower tariff categories.

      • Free Trade Agreements (FTAs)

        Ensure you’re leveraging any applicable FTAs to access reduced rates.

      • Foreign Trade Zones (FTZs)

        If you’re exporting via the US, FTZs may help you defer or reduce duties.

      • Duty drawback schemes

        Reclaim duties paid on goods that are later re-exported.

      Optimise customs and compliance

      Make sure your customs documentation is watertight. Use correct valuation methods and classifications to avoid overpayment. Establish or review a duty reconciliation process to ensure accuracy and compliance. Where needed, engage external trade compliance experts.

      From Liverpool to Lancaster, Manchester to Macclesfield, North West businesses are deeply connected to the global economy. The US tariffs may be a global issue, but their impact will be felt on the factory floors, in boardrooms, and in logistics hubs across the region.

      Whether you’re a large manufacturer, an SME engineering firm, or an ambitious start-up looking to scale internationally, now is the time to act. Don’t wait for the dust to settle – it may take months or even years for the new trade landscape to stabilise.

      Instead, invest time now in scenario planning, strategic realignment, and risk mitigation. Partnering with international trade experts, legal advisors, and customs consultants can help you navigate this shifting terrain with confidence and clarity.

      The North West has always been a powerhouse of innovation, resilience and global ambition. With the right planning and advice, it can continue to thrive – even in turbulent times.

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