The polling of the owners of small and medium-sized businesses, conducted by SME lender iwoca, shows that over half (56%) say the heavy tariffs from the US have reduced their willingness to export.

According to the ONS, only 11% of the UK’s SMEs engage in exporting. Of those who don’t currently, iwoca’s research reveals just over half (55%) are open to it in the future.

For one in seven (14%) SMEs who don’t export, tariffs are the top reason as to why, second only to not having a product that can be exported.

Echoing concerns around the US’ new trade policies, SME leaders demonstrate a strong preference for continental trade compared to trans-Atlantic trade. Nearly three-quarters (72%) of business owners would prefer the UK have stronger trade ties with the EU than with the US (27%).

Though UK businesses could be recoiling from exporting as a result of US-imposed tariffs, they are sympathetic to heavier trade restrictions on imports into this country. Nearly two in three (64%) think the UK economy would benefit from more protectionist policies, like tariffs, taxes, limits and rules.

Mark Di-Toro, Director at iwoca said: “Tariffs add complexity for any business looking to trade internationally – and for small businesses, even a slight increase in costs or red tape can tip the balance. SME owners tend to be open-minded and opportunity-driven, but they also work with tight margins and limited time.

“These findings show that while many SMEs are open to exporting, trade policies like tariffs can quietly shut the door before it’s even opened.”

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