Wiltshire's small businesses confidence knocked amid uncertain US trade

Concerns are being raised by business experts in Wiltshire about the uncertainty being caused by threats of export tariffs to the United States and how the impact they could have on smaller companies.

President Trump threatened to introduce new 10% tariffs in response to European leaders objecting to his plans to take control of Denmark-owned Greenland, before backing down.

Nicky Kildunne from the Federation of Small Businesses describes the situation as “very, very damaging” to business confidence, financial planning, and growth prospects at a time when small businesses are already navigating a challenging economic climate.

She explained: "Businesses may reconsider whether it's even viable to sell to the US, which has always been a major market for UK businesses. This could result in falling demand and reduced optimism, driving fewer firms to take on staff or expand their operations. Some may even look into scaling back product ranges or shrinking operations entirely."

Risks of knock-on effects

Beyond direct trade relationships, Nicky warns that tariffs could have ripple effects across supply chains. Suppliers for firms that rely on international trade could also see reduced demand, which she says is "very concerning."

For the first time, the FSB’s small business confidence index shows more businesses are choosing to shrink rather than grow, highlighting the uncertainty permeating the sector.

Nervousness among business owners

The issue of tariffs was first raised last year by the US president, sparking nervousness among exporters. While relief has been felt that the uncertainty remains.

Nicky noted that the volatility of Trump's decision-making remains unsettling: "Donald Trump tends to change his mind all the time, saying one thing one week and another the next, which deeply impacts business confidence."

Business owners seeking alternatives

Nicky remains optimistic about the ability of smaller businesses to adapt to challenges but acknowledges that trading beyond the US presents hurdles such as language barriers and increased bureaucracy.

She commended small businesses for their agility and innovation in exploring new international markets but admitted this situation adds significant pressure.

"It's another worry giving business owners sleepless nights. The US has been a long-term trading partner, and this uncertainty stifles the positivity and investment needed for businesses to grow, take on staff, or expand to larger premises," she said.

While opportunities remain globally, the looming tariffs continue to be an obstacle for UK small businesses at this critical economic juncture.

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