The United States is the largest export partner for the city region, receiving over £1 billion worth of exports, which represents more than 16% of all goods exported from the region. In 2023, the total value of goods exported from here was £6.3 billion, with approximately 930 businesses in the city region involved in exporting goods to the US.

Liverpool Chamber has sourced feedback among dozens of its member businesses, in sectors including manufacturing, engineering and logistics, for which Transatlantic trade is a fundamental part of their commercial operations.

Volatility and uncertainty for exporters

The overwhelming sentiment is one of “nervousness” among business owners, as a lack of clarity and a rapidly-changing policy picture leave many unable to plan ahead or guarantee their future ability to export to the United States. Some respondents prefer to remain anonymous for commercial reasons and we have collated their feedback below.

A manufacturer of special-purpose machinery based in Wirral, said:

“The impact has certainly created a nervousness, I think for both us and our customers. No business makes the margin of profit to be able to approach the situation entirely without great caution.

“With rising energy costs, national insurance , wages and everything to do with our daily production, our margins are constantly having to be reconsidered, which also takes time. We are always careful with the contract terms to ensure clients pay any duty and tariffs.

“We have been in negotiation for a year with a New England based customer, and I visited them last October following their enquiry. I think the current situation will delay the order as they are a family owned company and could not afford an extra 10%. For larger companies, it is expected that as we have no competitors in the USA they will have to pay. The concern is that it takes five to six months before the order will arrive at a US port, and not having certainty over the tariff could make customers postpone.

“It is also unsettling that when you work within a global market there has to be trust. Trust that good equipment/products will be delivered on time and the right support during install and long into the future will be given. People working in export, whatever country you are from or selling to, build relationships based on trust and respect, but what is happening now is diminishing this and is very negative. If this continues, it will impact our business, and we will not invest in growth.”

Stephen Greer, sales director at Brainboxes Ltd, which manufactures and develops industrial devices in Speke, said:

“For some customers, we are the importer of record so we will have to wait and see if there is a significant hike in costs over the coming weeks.

“For our two major USA-based distributors, they are in free trade zones which means they defer tariff payments until they determine where our goods are shipped to.

“This means they will only pay tariffs on goods destined for USA customers – around 50% of their customers are global and will not be subject to the tariffs. In this respect, customers in the USA will actually lose out and potentially pay more than customers from other countries.”

A spokesperson for a major global logistics operator, said:

“We have a diverse cargo mix and our volumes have yet to be impacted significantly. Our strategy is to continue to monitor feedback from our shippers and keep an eye open for any potential losses to certain cargo types but also monitor potential opportunities the tariffs may bring.

“Long term buying habits of the U.S. population may change if the increased tariffs are passed onto the retail price but it is too early to see that impact yet.

“Things can change very quickly – the volatility and extreme nature of the tariffs from certain areas could mean things change positively or negatively, which is not helpful in long term partnerships and contracts required for ongoing production lines.”

Alex Marshall, group business development and marketing director US at Clarke Energy, which provides distributed power plant solutions across the world, said:

“Our business exports services to the UK from the US within our business units. Components for our installations are typically supplied from Austria but may include China, for example in the instance of a battery energy storage system.

“If the USA’s tariffs are realised on either of these components, it will raise the price of our customers’ projects and will inevitably mean they will be forced to reconsider their investments accordingly.”

A locally-based sporting goods manufacturer said:

“We have been forced to increase global pricing by 6% due to UK increases in National Insurance Contributions and wage costs, as well as an increase in the costs of parts and materials from primarily UK suppliers.

“Due to import tariffs, we have further increased USA pricing by 3%. Margins in the US have been reduced, hitting the retailer, and we have absorbed the remaining, but we will not be able to afford to do this in the long term, and more price rises will be required.”

Sanjay Aggarwal, chief spice officer at specialist food manufacturer Spice Kitchen, said:

“While we have a really good USA listing, which is great, we are still unsure about what the impact of the new tariffs will ultimately be.

“Our customers may ask us to drop our prices or simply increase the recommended retail price charged to customers, or a mix of both approaches, so we await to see what happens.”

A local freight forwarding business gave an example of the impact on one of its regular customers:

“We move shipments of furniture to the USA on behalf of one of our biggest clients. There could be a major effect with regards to them sending products, especially when the product originally attracted a zero rate of duty, and now it is 10%.

“The furniture can range from £200,000 to £300,000, so the duty amount is extremely high, as much as 20k to 30k, so it could price them out of the game and they are saying some orders have now been cancelled.”

Alternative perspectives

Not all local businesses expect to be adversely affected by the imposition of tariffs, with some Chamber members able to offer positive notes in their feedback.

International shipping and logistics operator Maersk, which has offices in Liverpool city centre, said:

“The situation with the USA is evolving rapidly, making it difficult to predict the final outcome with certainty. However, based on the information shared so far, the UK appears to be in a stronger position than others to continue participating in American sales—though not without some cost.

“Maersk has recently introduced a direct service from the UK to North America—making us well-positioned to facilitate trade movements between the UK and the USA. There are potential opportunities for cargoes previously sourced from other regions to be supplied from the UK.”

A Wirral-based chemicals manufacturer said:

“We don’t export to the USA from the UK. A few years ago, we transferred production from the USA to Mexico, where we already had a plant.

“Pending the final tariff decision, it now looks like we could end up manufacturing the USA-destined product here in the Wirral in the short term as tariffs on specific Mexican goods can reach 25%. So there won’t be a negative effect on our business right now, and maybe a short-term positive effect.”

A manufacturer of medical devices headquartered in the city region, said:

“We import more from the USA than we export, so it shouldn’t affect us greatly from an export point of view.

“We don’t have any regular customers from the USA, because there is a lot of competition in our particular market there and the cost and delivery time of transatlantic shipping erodes any price advantage we might have over some local competitors.”

Chamber insight

Elena Enciso, head of international trade at Liverpool Chamber, said:

“Businesses in the Liverpool City Region are increasingly nervous as they try to figure out pricing, logistics and their overall relationships with the USA. The landscape shifts almost on a daily basis and firms naturally do not want to lose their stake in the US market.

“We know of some firms who have found themselves considering moving their supply chain or repricing the costs of different raw materials, only to then realise it was all in vain because of sudden policy shifts or the USA agreeing a new deal with a certain region, e.g. Mexico or the EU.

“Most businesses are working hard directly with their customers to uncover ways to help to mitigate the impact and keep trade flowing.

“Liverpool Chamber is also joining with other Chambers of Commerce to help its members navigate the ever-changing environment and find new strategies to move forward. We would also recommend that businesses regularly check the Department for Business and Trade guidance and updates on tariffs US Trade Tariffs – Great.gov.uk.”