‘US tariffs have had a huge impact on my small business. More could threaten our future’
“What happened last year hit us hard,” said Martha Keith. “My heart sank again when I read the news over the weekend.”
The news that had Ms Keith worried about the future of her business was Donald Trump’s threat to increase tariffs on goods imported into the US.
The US president said Britain and other countries opposed to Greenland would face 10 percent tariffs on all products starting next month, rising to 25 percent from June 1 until an agreement is reached on Washington’s takeover of the Danish territory.
The threat, described as “completely false” by Prime Minister Keir Starmer, came after the US introduced 10 per cent tariffs on most British goods last year; however, in the UK, exemptions existed for steel, aluminium, aviation and automobiles.
For Ms Keith, founder and chief executive of Dorset-based stationery company Martha Brook, the prospect of higher tariffs is unwelcome. He believes this poses a significant challenge to the survival of many small firms in the UK, further exacerbating the impact of tariffs introduced in 2025.
Founded 12 years ago, Martha Brook manufactures stationery in the UK and sells direct to customers online.
The vast majority of its business is done on sites like Etsy, where U.S. buyers account for about 40 percent of its sales. Those sales could be subject to a 25 percent tariff in June, and Ms. Keith sees this as another hurdle for her company to overcome.
Ms Keith said of the president’s threat: Independent: “The US has been a huge and growing part of our business.
“What happened last year affected us very much. When I read the news over the weekend, my heart sank again.”
Even the threat of higher tariffs and the speculation surrounding them is impacting businesses as it hits consumer confidence in the U.S., according to Ms. Keith.
These combinations, he said, have reduced sales in America since Mr. Trump’s current tariffs were implemented.
“Before the tariffs, we were increasing by 50 percent [on Etsy]”It was a huge growth area for us,” he said, and continued: “Now they have decreased by 50 percent.
“The swing is staggering. Really, if there’s another 10 percent imposition – or just talk around it – you’re talking about getting to a point where we’re going to destroy a really big part of our business.”
In response to the president’s threat, Sir Keir appealed for calm on Monday, warning that a trade war would “help no one” amid fears that Britain and the EU could be tipped into recession with a hit of up to £22bn to UK GDP.
Between July 2024 and July 2025, the US was the UK’s largest trading partner, accounting for 17.8 per cent of total UK trade, according to the Office for National Statistics (ONS).
William Bain, head of trade policy at the British Chamber of Commerce, said: “New tariffs on goods exported to the US will be further bad news for UK exporters who are already struggling with tariffs imposed last year.
“We know that trade is a way to strengthen the economy and that the success of transatlantic trade depends on reducing tariffs, not increasing them.”
According to Ms Keith, raising tariffs would mean that the business models of firms such as Martha Brook would no longer be sustainable.
“This is definitely something that threatens the future of a business like ours,” he said.
“We came into this year thinking about how we would continue our current manufacturing model in the UK and ship products overseas.
“Last year was the first year we felt like that model was really threatened. We came into this year really thinking about how we could do things differently and innovate.
“It’s really not sustainable to continue operating without changing the way we do things. It’s getting to the point where it’s not cost effective and we need to be smarter.”
Ms Keith decided last year to cover the extra costs of the tariffs rather than passing them on to the consumer.
He said it cost his business $7,500 (£5,500) in products that had already been sold, before sales fell “significantly” when the tariffs were imposed.
Tariffs pose an extra challenge as the industry is ill-equipped to navigate the country, he said, citing Brexit and the impact of the coronavirus pandemic on operating costs as factors damaging the resilience of British businesses.
He said: “This is the direct-to-consumer route, which is how many businesses in the UK start and grow.
“The complexity of European shipping has become so difficult post-Brexit, with different packaging regulations for each country, GPSR (General Product Safety Regulation) that one thing leads to another.
“The US was a great market for us. It feels unfair to customers and businesses. This route is being closed.”
Therefore, he believes that businesses that arise from people’s hobbies and interests face a very challenging trading environment.
“When I started this business, I felt like if you have a passion project, this is something you can do as a career.
“I’ve hired a lot of people, but I’ve gotten to the point where it’s not a great thing to do anymore. Even if it’s something you love, it just feels so hard.”
Geoffrey de Mowbray, chairman of the British Exporters’ Association (BExA), said the tariffs would threaten “years of hard work, travel and investment” by British businesses to build transatlantic relations.
He said: “The idea that new tariffs could be implemented with little warning is leaving businesses unsure of how to plan or price for the coming months.
“A significant portion of our members are owner-managed companies with tight margins. They don’t have teams of lawyers or the ability to absorb the extra costs, so tariffs can very quickly turn a viable export relationship into something that no longer works.”
“What makes this particularly difficult is uncertainty. Businesses can plan for challenges, but it’s much harder to plan when trade becomes embroiled in wider political debates.”
Similarly, Michelle Ovens, chief executive of Small Business Britain and adviser to the UK Government’s Board of Trade, said additional tariffs would “create significant uncertainty” for businesses across the country.
Ms Ovens said: “Government data published in September 2025 shows that only 17% of SMEs (small and medium-sized businesses) exported, but they accounted for almost half (44%) of UK exports to the US.
“This makes small businesses a critically important part of the conversation and particularly susceptible to sudden changes in trading conditions.”
But Ms Keith thinks this will only serve to further test the resilience of struggling small businesses.
“We are determined to continue and continue down this path,” he said. “Small business owners are very resilient, but this situation really tests resilience.”
He added: “This is very frustrating and has already had a noticeable financial impact on our business. I think if further tariffs are introduced we could see another impact which could be quite devastating.”
