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63% of UK firms fear tariffs will hit growth, Santander Trade Barometer finds

  • 63% of UK businesses say rising tariffs are a significant risk to growth, prior to the Liberation Day tariff announcement
  • 80% of large UK firms looking to expand overseas see tariffs as a key threat
  • 65% of export-oriented US businesses share the same concern, rising to 77% in the tech, media and telecoms (TMT) sector
  • In the UK, 48% of firms adjusting supply chains are doing so to reduce tariff exposure

 

Businesses across the UK and US are growing increasingly concerned about the impact of global trade tensions, according to early findings from Santander’s Spring 2025 Trade Barometer, released ahead of the full report in May.

 

The research, conducted in March 2025 – prior to global tariffs being formally announced – found that 63% of UK companies said rising tariffs posed a significant risk to their growth. The concern is, unsurprisingly, even higher among internationally ambitious firms: 80% of large UK businesses (250+ employees) looking to expand overseas cite tariffs as a key threat. 

 

Similar trends are evident among US businesses, where 65% of export-oriented companies highlight tariffs as a major concern, rising to 77% in the tech, media and telecoms (TMT) sector. This mirrors recent developments in the US, with proposed tariffs on electronics and semiconductors reigniting fears over supply chain disruptions and rising costs. While some products are temporarily exempt, the future around their reimposition continues to create uncertainty, particularly for service-led companies reliant on international supply chains.

 

Despite the research being conducted prior to Liberation Day tariffs, one in five (20%) internationally trading firms still cited tariffs as a direct barrier to doing business, nearly double the number (11%) from Spring 2024. Smaller businesses (under 250 employees) are more likely to cite tariffs as a challenge (22%) than larger ones (17%), while firms in wholesale and retail (26%) and manufacturing (24%) are among the most affected.

 

In the UK, nearly half (48%) of firms changing their supply chains say they’re doing so to reduce exposure to tariffs.

 

John Carroll, Head of International and Transactional Banking, Santander: "What we’re seeing is a clear shift in mindset. Businesses – particularly those with global ambitions – are increasingly aware that trade policy uncertainty is no longer abstract. Whether it’s US-China tensions or shifting EU positions, tariffs are back on the boardroom agenda. Many are rethinking their international footprint in response and will need further support as they look to navigate the everchanging landscape and create new growth opportunities."

 

 

 

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The information contained in our press releases is intended solely for journalists and should not be used by consumers to make financial decisions.

 

Notes to Editors

  1. The Santander Trade Barometer research is carried out bi-annually in spring and autumn. The Spring 2025 Fieldwork was carried out between 3rd – 20th March 2025 by YouGov. Total sample size of 2,016 Sales and Procurement Decision Makers in businesses across the UK, US, Spain and Poland. Including 1,006 UK businesses with minimum £1m annual turnover.
  2. Case studies available for interview

 

Santander UK is a financial services provider in the UK that offers a wide range of personal and commercial financial products and services. At 30 June 2024, the bank had around 19,600 employees and serves around 14 million active customers, including 7 million digital customers via a nationwide 444 branch network, telephone, mobile and online banking. Santander UK is subject to the full supervision of the FCA and the PRA in the UK. Santander UK plc customers’ eligible deposits are protected by the FSCS in the UK.

 

Banco Santander (SAN SM, STD US, BNC LN) is a leading commercial bank, founded in 1857 and headquartered in Spain. It has a meaningful presence in 10 core markets in the Europe, North America and South America regions, and is one of the largest banks in the world by market capitalization. Santander aims to be the best open financial services platform providing services to individuals, SMEs, corporates, financial institutions and governments. The bank’s purpose is to help people and businesses prosper in a simple, personal and fair way. Santander is building a more responsible bank and has made a number of commitments to support this objective, including raising €220 billion in green financing between 2019 and 2030.  In the first quarter of 2024, Banco Santander had €1.3 trillion in total funds, 166 million customers, 8,400 branches and 211,000 employees.