Higher US tariffs could leave South West companies teetering
President Trump hopes to work out a deal with the UK for importing goods to the States
Business experts in the South West say increased US import taxes could leave businesses in the region at risk.
US President Donald Trump has imposed higher tariffs on Mexico and Canada, adding that they're 'definitely' coming for the EU too.
The President says he hopes to work out a solution with the UK that doesn't involve tariffs.
Tariffs are a method countries use to encourage citizens in their country to buy products made at home. They do this by charging companies a tax on importing goods from abroad.
Sam Holliday from the Federation of Small Businesses in the South West told there's a danger of a trade war breaking out.
And while it's unknown if the UK will be hit with tariffs, Sam says it could have a negative impact on exporters in the south west.
He said: "If President Trump said that any exports going out of Britain would cost more in America, that means that there would be less of them will be bought, which means if you're a small business in the Southwest, all the goods you send to America, you'll probably find it being sold less because they're more expensive now."
Sam added that the uncertainty around the President's decision making means we all need to be on our toes for what he might do next.
He said that while UK-US relations appear quite strong, the decision to tax Canada so highly should serve as a warning.
"I don't think we should be hitting the panic button just yet, but the nature of an unpredictable government is unpredictable things happen, so we've got to keep an eye on it," Sam said.
Sam also said we could be impacted by tariffs imposed on the EU.
"If EU have to start paying more to send stuff abroad, then they might have to increase their costs as well, which means that anything that we get from Europe might certainly be more expensive, almost like as a as a third party casualty if you like.
"We're not involved in that particular trade war, but the companies that are might have to find other ways of raising finances. So again, it's just one of those things we've got to try and avoid if we can," Sam told us.
He added that this is a headache small businesses 'could do without' considering it's a tricky time as it is.