Issue #106 - Trade wars, tariffs, and your business 🫡
Will Trump’s tariffs affect your business? 🟠 | How to relocate your business 🏪 | What are the main challenges facing business owners in 2025? 🧗♀️ | Millers Yarns & Crafts 🧶 | Words | Tunes | More
Will Trump’s tariffs affect your small business? 🟠
Welcome to Issue #106 of The Backbone. The free fortnightly newsletter from Bionic
If you’ve had the misfortune to catch up with the news lately, you’ll have heard about Trump’s Trade Tariffs™️
To try and encourage US consumers to buy more American-made goods, increase tax revenue, and generate investment, the US president has placed tariffs and taxes on goods from countries all over the world - even some inhabited solely by penguins.
The news has caused a stir in stock markets across the globe, but a 90-day pause suggests we won’t feel any impact on our day-to-day lives for at least a few months.
But what if tariffs are placed on the UK? Will they affect your small business, even if a Netflix subscription is the closest you get to trading with the US? Let’s have a quick look…
💸 What are tariffs?
Tariffs are taxes that one country places on goods imported from another. When one country puts tariffs on products from other countries, it can have a ripple effect that can even impact small businesses.
🛒 How could tariffs affect your small business?
Let’s say you run a micro business in the UK that sells handmade furniture, and some of your materials (like metal fittings or fabric) are sourced from the US. If the US places tariffs on UK goods, the UK might respond with tariffs on US goods. This can lead to higher costs on imported US materials, meaning your costs go up. If so, you might have to raise your prices (affecting your customers) or absorb the added costs (affecting your business and employees).
Now, imagine you export your furniture to the US. If the US imposes tariffs on UK-made furniture, your products become more expensive for American customers. This might reduce demand, and you could lose sales.
🤔 What if your business doesn’t trade with or in the US?
There are a few ways your business could be affected by tariffs, even if you don’t trade directly with the US. These include:
Higher supply chain costs - If your UK suppliers rely on US parts or materials, their costs may rise. These costs might be passed on to you. If your looking at alternatives to US suppliers, then other businesses will be too. This can push up demand for supplies from other countries, which will in turn push up prices. In short, tariffs can raise prices across supply chains.
Inflation and higher interest rates - Tariffs can raise prices for consumers and firms buying goods from abroad. This can fuel inflation. And when inflation’s rising, the Bank of England inevitably hits the big “INCREASE INTEREST RATES” button to make borrowing more expensive. Check out our inflation breakdown from Issue #21.
Market uncertainty - The introduction of tariffs creates an unpredictable trading environment. Planning for the future becomes challenging when policies can change rapidly. This means making informed business decisions can be tricky, especially for smaller businesses with limited resources.
Another thing to consider is the impact on businesses that use US-based tech. If you use Amazon Web Services (AWS) for your website or cloud computing, will prices increase because your business isn’t US-based?
Same goes for things like Slack, Trello, Zoom, Stripe, PayPal, QuickBooks, Mailchimp, Canva, Shopify, Wix, WooCommerce - the list is almost endless.
Even though tariffs are a government-to-government issue, the knock-on effects can reach even the smallest UK businesses by raising costs, reducing sales, and creating uncertainty.
No one seems to know where this is headed (not even experienced economists), so it’s a case of carry on as normal and watch this space. Only time will tell.
Now, let’s get on with the rest of Issue #106…
🤝 COMMUNITY
Join our community of small business superheroes 🦸♀️
Small business owners are the superheroes of the high street. But small business owners rarely get their voices heard. Now there’s a place to chat, share advice and help each other through the lows and highs of running a business. To get involved, scan or click the QR code above or click the button below to sign up.
🗞 READ
How to relocate your business 🏪
Whether you're upsizing, downsizing, or simply after a change of scenery, relocating can be a huge step with lots of things to consider. Your energy contract probably won’t be at the top of your list, but it’s important you sort it out to avoid overpaying for power. Here’s all you need to know about business energy, relocation, and Change of Tenancy (CoT).
What are the main challenges facing business owners in 2025? 🧗♀️
In the last issue, we teased you with the Bionic Business Report - a survey of 500 small business owners that looked at their biggest challenges in 2024 and how they think things will pan out in 2025. The full report is available by clicking the button below.
🗣 SHOUTOUT
#BionicBusinessStory - Millers Yarns and Crafts 🧶
Bionic caught up with Ann Hurley, who runs the celebrated Millers Yarns and Crafts in Northamptonshire. We found out how she started, what her future looks like, and her top business tips for other SME owners.
Bionic: How did you set up your business?
Ann Hurley: My full-time day job was in business development, and it was very full-on. I was also running my own sideline online craft business, so it was non-stop. Then one night, my husband said, “Just go for it, open your own craft shop”, so I did.
B: What’s the best thing about running your business?
AH: Even on quiet days in the shop, there’s always something to do, from advertising, updating social media and dressing the windows, to tidying, restocking, re-ordering or crafting. And I love it all.
B: Do you have any advice for someone wanting to set up their own business?
AH: You should know what your competition is doing all the time, be prepared for bumps along the road and remember to be kind. A simple ‘Have a lovely day’ or ‘What a beautiful coat’ has the power to lift somebody and make them feel special.
B: Do you have plans for the future?
AH: I have so many ideas for the future! Obviously, as a small business owner, you can’t take anything for granted. You have to have plans in place: a 12-month plan, an 18-month plan, but the truth is, I want to be here until I retire. Then I’ll pass the business on to my daughter.
Find out more about this Bionic Business Story by clicking on the image below.
Check out the full small business story at Bionic
📊 BUSINESS
Get your business costs sorted 💷
Bionic is the comparison site for your small business. We compare a range of business essentials to help you save time, money, and hassle.
Our tech-enabled team will answer all your questions in simple terms and help you find the best deal on business energy, insurance, phone, broadband, or finance. No jargon. No-fuss. #BeABionicBusiness 🦾
🎧 LISTEN
Playlist 🎶
Some of our team were down at Brighton SEO last week - enjoying beer in the sunshine, ice creams on the beach, and the odd seminar in between. Head no doubt still swirling with all this SEO, Laura, Content and SEO Manager at Bionic, also found this monster playlist called Brighton SEO. At this point, we’d normally list the bands involved, but we think there’s something for everyone on here. Check it out!
Podcast 🎙
We realise we’re miles behind the curve with this one (unusual for us, we know), but last week we stumbled upon our new favourite podcast - Help I Sexted My Boss. (thankfully, this wasn’t found via a Google search on how to get out of that very situation). William Hanson (posh etiquette expert) and Jordan North (north in both name and twang) help listeners navigate the challenges of modern life, answering your 21st-century questions and finding solutions to those everyday dilemmas.
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🚫 STOP
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