Tariff Increases: 7 Things Accountants Need to Know

President Donald Trump’s announcement of sweeping new US tariffs has already sent global markets tumbling. While the UK has avoided the harshest rates, a new 10% tariff now applies to all UK exports to the United States — and that’s just one piece of a larger, volatile economic picture.

The tariffs have been justified by the US administration as a response to long-standing trade deficits, but for businesses, the resulting instability may feel far removed from the political debates driving these decisions. As the global trade situation unfolds, you can play a vital role as an accountant in helping your clients understand the indirect impacts of the global shift being created by the imposed tariffs — even if they don’t trade with the US at all.

Here are seven key things you need to know about the additional tariffs, and how to translate them into practical support for your business clients:

1. This Isn’t Just About Exporters — Market Confidence Is Already Hit by Trump Tariffs

The first thing to be aware of is the broader economic environment. Following the announcement, stock markets across Europe, Asia, and the US have fallen sharply. The volatility is fuelled not only by the additional tariffs themselves, but by fears of wider trade wars and an economic slowdown.

What you can do

Reassure your clients that you’re monitoring global developments on their behalf.

There could be significant implications from the new tariffs, so encourage scenario thinking — how would your client's business respond to a dip in consumer demand or rising costs?

Talk to your clients about their business plans and forecasts, these will need to be updated to reflect a more cautious short-term outlook. If your client isn't preparing forecasts, this could be a good time to offer your help so that they are better equipped to anticipate and deal with potential problems.

Tip: Now is a good time to talk about building up cash buffers or reducing unnecessary spending while the economic picture is uncertain.

Even if your clients don’t trade directly with the US, disruptions to global supply chains and retaliatory measures between major trading partners could still affect pricing, availability, and confidence across a wide range of industries. Suppliers, customers or key partners of your client might be affected. For instance, if a major customer loses business due to import taxes or market shifts, your client could lose orders too.

What you can do

Encourage clients to review their customer and supplier base — who are they reliant on, and are those businesses at risk?

If a client relies heavily on one or two customers, now’s the time to talk about diversification. Or if they only use one or two suppliers, perhaps alternative sourcing strategies need to be looked at.

Train your clients to look out for signs of strain in their customers — delayed payments, reduced orders, price sensitivity — and how to flag these early to protect themselves.

Tip: Run a simple customer dependency check with clients — for example, what percentage of revenue comes from their top 3 customers?

The new tariffs won’t just affect finished goods — they can disrupt entire supply chains. UK businesses could find their costs rise if they use goods that originate in foreign countries, or if their suppliers increase prices to protect their own margins. Supply chain disruptions could also lead to delays that will affect cashflow.

What you can do

Help clients identify materials and other costs that may be vulnerable to price rises. Clients in the manufacturing, retail, or construction sectors may be particularly at risk.

Then you could support your client in modelling the impact of cost increases on margins and cashflow.

Once you understand this, work with them to review supplier contracts and pricing terms to see where flexibility could be built in.

Tip: Encourage clients to use a simple cost tracker - perhaps you could build them one - so they can monitor price changes over time. Even small shifts in materials, shipping, or packaging costs can highlight early signs of wider inflation or supply chain disruption.

4. Consumer Confidence May Dip — Even for UK-Facing Businesses

Global uncertainty often leads to reduced consumer and business spending. This can particularly hurt businesses in sectors like retail, hospitality, creative services, and construction — even if they don’t deal with the US at all.

What you can do

Help clients assess the resilience of their revenue by asking: 'From your customers' perspective, how essential are the goods and services you offer?' The more your client's products or services are seen as "must-have" rather than "nice-to-have" by their customers, the more stable business revenue is likely to be.

This insight could then be used to stress test sales forecasts and cashflows to identify if there are any areas of vulnerability. Would your client be able to manage through a temporary slowdown.

Additional advice you could offer might include encouraging clients to strengthen customer relationships and review their marketing plans. Advice on stock management may also help — in some sectors, reducing stock can preserve cash when sales are slow.

Tip: If your client is consumer-facing, use this as a prompt to revisit their marketing and customer retention strategies — now is the time to hold onto loyal customers.

The UK government has announced it is consulting on whether to introduce reciprocal tariffs in response to the US measures. If implemented, this could further affect prices, trade, and business confidence.

What you can do

Stay close to developments and keep your clients informed — even a simple newsletter or one-liner in your emails helps position you as a proactive adviser.

If you have clients who import goods, consider helping them identify alternative suppliers in case UK tariffs are introduced.

Encourage clients to factor in potential delays in supply chains or shipping routes while trade arrangements evolve. As mentioned already, these won't just be delays in moving materials. Cashflow could also be detrimentally affected.

Tip: Suggest clients don’t rush into long-term supplier contracts if there’s a risk of tariff-related changes in the coming months.

In response to the US tariffs, other countries like China have already imposed retaliatory tariffs of their own. This heightens the risk of a global trade slowdown.

What you can do

Keep an eye on any clients that have overseas exposure — even small businesses may sell into supply chains that cross into Asia or Europe.

Exchange rates are being affected by the increased tariffs. So, flag concerns to clients about exchange rate volatility, particularly if they invoice or are paid in foreign currencies.

Encourage your clients to practice practical cash management. For instance, they may need to tighten credit control, be on the lookout for early signs that their debtor book is under strain, and to avoid over-reliance on overdrafts.

Tip: This is a good time to ask clients about the terms of any debt they have — do they have flexibility if things tighten?

7. Your Clients Need Help Navigating Uncertainty, Not Just Technical Advice

In times like this, small business owners don’t just want tax and compliance — they want clarity, reassurance, and strategic guidance.

What you can do

Be proactive: send a short, simple summary of what’s going on and how you’re watching it.

Could you consider offering 1:1 check-ins or short “health check” sessions with those clients that are most likely to be affected?

Provide your clients with practical tools: cash flow templates, margin calculators, or scenario models — these are incredibly helpful for small businesses that don't have their own internal finance teams.

Tip: Consider running a webinar or an in-person client briefing — even a 30-minute session can help clients feel supported and better informed.

While these new US tariffs may seem distant for many businesses, the economic ripples are real — and smaller businesses are often the first to feel uncertainty in the form of price changes, slow orders, or delayed payments.

As their accountant, your value lies in cutting through the noise and helping clients focus on what they can control: their cash, their costs, and their resilience.