A third of UK businesses say they are exposed to the threat of new US tariffs, according to a snap survey carried out by the British Chambers of Commerce.
The survey of nearly 350 firms found that 33% believe they will be impacted, while 21% said it is too early to judge and 46% said they do not expect to be exposed.
Among firms expecting to be affected, a third (33%) are already taking action, while 55% said they recognise the risk but have yet to change their plans.
Of those exposed, 17% are carrying out contingency planning, 12% are planning a strategic shift to reduce exposure to the US market, and 4% are making operational adjustments. A further 12% expect no change as they do not believe the tariffs will be implemented.
Based on current trading levels, the BCC estimates UK businesses could face a £6billion hit by the end of January if tariffs are introduced, rising to £15billion by June.
William Bain, Head of Trade Policy at the British Chambers of Commerce, said: “The threat of a new tariff bombshell from the United States is bad news for UK businesses, consumers and the wider economy.
“Our data shows some firms are already taking action following Saturday’s statement from the US Administration.
“If the tariffs are implemented the impact on British businesses is clear. It’ll mean lost orders, higher costs and lower margins for firms.
“Trade delivers economic growth, and the way forward for successful transatlantic commerce is through reducing tariffs, not adding more costs.
“We welcome the Government’s clear but calm response. We were pleased to hear the Prime Minister focus on the SME impact, during his press conference on Monday.
“Ministers must look to support UK businesses through these turbulent times, while prioritising the full implementation of Economic Prosperity Deal.”