How US trade tariffs are impacting UK manufacturers: Insights from 250 finance leaders
Written by CPiO
Recent US trade tariffs have disrupted businesses globally and created challenges across international markets.
The effects of these tariffs not only impact the cost of goods but also heavily impact trade relationships and supply chain management.
To understand the impact of international trade tariffs on UK manufacturers to date, CPiO, a Solihull-based UK provider of Sage software and services, has published the results from a survey of 250 UK Finance Decision Makers (FDMs) working within the manufacturing and distribution/logistics sectors.*
Supply chain pressures and impacted sales pipelines
FDMs report that tariff changes are putting pressure on order volumes and increasing supply-chain risk with 56 per cent having seen up to a 40 per cent reduction in their respective sales pipeline.
Moreover, 70 per cent of respondents report that supply chain risks have increased, and 46 per cent say they are struggling to model future financial scenarios.
Strong financial modelling and reliable ERP systems
To understand how international tariffs are affecting UK business performance, CPiO asked what changes companies had already carried out or planned to carry out in response to the current instability.
Looking at future planning and preparation, 66 per cent of respondents said they were developing contingency plans, and 46 per cent are reviewing their supplier contracts.
The report findings also uncovered a shift in the mindset of UK FDMs, with 48 per cent feeling that the tariff changes exposed weaknesses in their ERP or finance systems, and 12 per cent were looking to change as a result.
Moreover, these technology challenges contributed to low confidence in the sector where respondents felt that they were suffering from ‘outdated or inflexible finance or ERP systems (34 per cent)’, as well as a lack of real-time visibility into stock and supply chains (38 per cent).
It's not all doom and gloom as the report uncovered positives with the UK market prioritising finance skills and training (43 per cent of respondents), and over a third (34 per cent) are looking to adopt AI and greater automation to improve outcomes.
Commenting on the findings, CPiO’s managing director, Andrew Watkinson said: “It is clear from our survey that there is still a lot of turbulence in the UK manufacturing and distribution market.
“Companies made initial adjustments but are now looking to cement longer term strategies to ride out the coming months. Technology as an enabler is critical to data confidence and good financial planning.”
Looking ahead to 2026
To view the full insights and findings, please visit the CPiO website International Tariff Turmoil: How Global trade policy is rewriting UK SME finance strategy and get your copy.
*The survey involved collating the views and opinions from 250 UK Finance Decision-Makers who work within the Manufacturing and Distribution/ Logistics sectors (minimum annual turnover of £1m or more)