Exporters get support to cushion US tariffs blow – Daily Business

Exporters have been given additional support from the UK government to help cushion the blow of higher US tariffs.

The Treasury and Business department announced a multi-billion-pound increase in government-backed financing.

The new package will give UK Export Finance (UKEF) the power to expand financing support for British businesses by £20 billion, with small businesses also able to access loans of up to £2 million through the British Business Bank’s Growth Guarantee Scheme.

Thousands of companies are expected to benefit from the move, including those directly affected by tariffs.

UKEF will also offer businesses partial loan guarantees through more flexible uses of its Export Development Guarantee, helping to mitigate the impact of new tariffs and associated economic uncertainty.

Of the £80 billion, up to £10 billion will be allocated to ensure that businesses significantly impacted in the short term by the current situation have access to the finance they need to grow.

The British Business Bank will expand its Growth Guarantee Scheme by £500 million, which will provide vital finance for smaller businesses.

Chancellor Rachel Reeves, said:  “The world is changing, which is why it is more important than ever to back our world-leading businesses and support them to navigate the challenges ahead. 

“Today’s announcement will do that just, with thousands of businesses right across the country set to benefit.”

Business and Trade Secretary Jonathan Reynolds added: “Our message to British business is clear – we’ve got your back. This package, backed by the British Business Bank and UKEF, will be a crucial shot in the arm to exporters and small firms looking to trade around the world.”

Responding to the announcements, William Bain, head of trade policy at the British Chambers of Commerce (BCC) said:  “The BCC called last week for enhanced credit and financial support through UK Export Finance and the British Business Bank to cushion the effects upon UK exporting firms.

“Traders will welcome news that the Chancellor and Business and Trade Secretary have responded positively to the actions we proposed to help thousands of UK firms who export to the Unites States.” 

He said the measures “will provide much needed cashflow support now for exporting firms affected by the impact of new tariffs”.

“In our survey of more than 600 businesses last week, the clear message from firms is that negotiation not retaliation is the best way forward.

“Firms also told us they want government to get tariff relief in terms of our trade with the US, remove unnecessary trade barriers in our trade relationship with the EU, and to work with our partners in the Indo-Pacific region to expand opportunities for UK trade and investment. 

“A calm, clear headed approach by government to trade negotiations together with a strong package of increasing the finance available to affected firms is the way forward. That will back the resilience UK exporters are showing in these uncertain times in global trade.”