Tariffs are expected to affect the profits of two-thirds (two thirds) of businesses.

Following President Trump’s announcement of tariffs, a snap poll of 562 Institute of Directors Members found that more than a third of business leaders (37%) expected to be affected by the tariffs. Of those, two-thirds of them (70%) predicted their profits would decrease as a consequence.

As a result of the tariffs, IoD members stated that they would review their business strategies, 17% would examine supply chain locations, and 13% would review export markets.

While 42% of members believe that the UK should have good relationships with all its trading partners, only 34% of them would prefer to see a closer alignment with EU.

Anna Leach chief economist of the Institute of Directors, said that business leaders had praised ministers for their low-key response to Trump’s Tariffs. She said that “the majority of business leaders are happy with the government’s balanced and measured approach to global trade negotiations.”

She added that closer alignment with EU is becoming an urgent priority to many businesses. “The EU, as a group, is the UK’s biggest export market. It will account for PS356 Billion in exports by 2023, while PS187 Billion goes to the United States.”

Leach said that business leaders are taking a “wait-and-see” approach towards the tariffs. like JCB were also looking to relocate their activities to the US. JCB announced today that it has doubled the size a Texas plant so it can expand manufacturing in the US and avoid tariffs.

Leach stated that businesses are “reluctant” to invest time and money in costly and difficult-to-reverse responses, given the uncertainty surrounding political decisions made by the US. She said that this would add to the slowdown in UK economic activity in the lead-up to the Budget announcements in October and afterward, and further hinder growth.

The IoD poll received 562 responses. Of these, 5% were large businesses (250+ employees), 19% medium businesses (50-249); 23% small businesses (10-49 individuals); 31% micro businesses (2-9 individuals); and 11% were sole traders and self-employed businesses (0-1 individual).

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