The business world is collectively holding its breath.
Since US President Donald Trump announced new import tariffs, business leaders have been bracing for impact. When those tariffs took effect on 5 April 2025, the stock market dipped and early indicators pointed to a tough road ahead.
Last week, the administration announced a 90-day pause on tariffs for all countries besides China, and the stock market bungee-jumped back up. Now, we’re in a waiting room. It’s not quite business as usual, not quite crisis mode.
What’s clear is this: the events of the past month may have created common ground for businesses, but the consequences won’t be the same. Tariffs will land unevenly, and for many SMEs, the inevitable shifts could be especially challenging.
The key obstacles
Operationally speaking, SMEs could face some of the biggest obstacles off the back of increased US tariffs.
To state the obvious, importing materials or goods will incur additional costs, and risk weakening businesses’ bottom line. Exporters will need to also factor in a narrowing of profit margins, and potential loss of both partnerships and consumers in regional markets.
What if you’re not an importer or exporter? The impact might not feel so direct, but it’ll still exist. And for much the same reasons. A loss of revenue for one collaborator can have a ripple effect on the entire supply chain, or even break a link.
SMEs can also expect increased complexities. Suppliers and vendors will be swapped out, regions changed, and in some cases, manufacturing relocated. All of which will shift the supply chain. Adhering to new compliance will mean more paperwork, time and resource, and changes to production, products and partners could lead to delays.
The fundamental concern for most SMEs is whether increased tariffs are going to lock them out of revenue-generation. And it’s a valid one. But look beyond the doom-and-gloom of headlines and forecasts, and there is an opportunity to adapt to new business windows.
The key opportunities
For these not insignificant obstacles SMEs will need to overcome, there are opportunities. One of the most significant being leveraging the natural agility of SMEs’ operations.
Unlike the majority of larger corporations, smaller-medium enterprises tend to be relatively unencumbered by red tape. Less bureaucracy and fewer decision-makers at the top level means that shifting trajectories to new suppliers or trade markets can be done swiftly. Granted, it might require some resource at the outset, but it could prove cost-saving in the long-term.
There’s also something to be said about capitalising on a change in sentiment. Some businesses will naturally choose this moment to overhaul their own operations and market strategy, and we can expect an influx of businesses and organisations looking to make deals.
We’re already seeing this in real-time. Canada’s nearly CAN$6nn investment aims to support businesses find new trade partners outside of US territories. Initiatives like these could be mirrored elsewhere – and governments often opt to invest in SME growth for economic growth.
For the US-based businesses, a surge of ‘Buy American’ could provide initial gains. This is more applicable to consumer-based goods. And, almost certainly a short-term wave. Ultimately reshoring is unlikely to take off in any significant way and consumers will quickly feel the pinch. But a win is a win, and SMEs can ride this wave while they revisit their trade strategies.
A new era of global trade
So, where does that leave SMEs right now?
Well, we might be in the midst of a 90-day pause, but a pause is just that. And the most detrimental action right now is to ‘wait and see’. Realistically, we’re on the cusp of a seismic shift for trade, and increased tariffs are only one corner of a wider picture influencing the future of business.
Leaders need to mobilise – fast – to identify the biggest risks in their supply chains. Looking critically at best and worst case scenarios will lay the foundations for the most accurate planning. And provide key decision-makers with a suite of information.
Developing any new trade strategy starts with the right approach to partnerships.
Supply chains are historically siloed, but isolationism in global trade no longer exists. If one link in the supply chain is compromised, then every link is. And building a stronger outcome for trade markets hinges on building a stronger system of collaboration.
Talent + tech = trade harmony
For SMEs, the key to expanding reach without expanding resource is adopting the right tech – and knowing how to use it.
Structured, contextual data and real-time insights can drastically build SMEs’ oversight. It can enhance teams’ ability to predict, plan and prevent. It can strengthen partnerships and reputation. And it can drastically improve access to expertise, unlocking and democratising trade.
Bottom line, this new era of trade presents a key opportunity for SMEs to innovate and carve their own corner of the market. Critically, it’s an opportunity to strengthen both the trust in and reputation of SMEs in global systems.
