• 82 percent of UK transport and storage firms report no impact from new US tariffs, with only 3.4 percent facing added costs, far lower than retailers and manufacturers
• ParcelHero says the sector has weathered the tariff changes better than expected, even after the end of the US de minimis exemption on low-value goods
• While manufacturers and retailers report reduced demand and some export suspensions, transport and storage companies remain largely stable but cautious about future ripple effects

In a new government survey, 82 percent of UK transport and storage companies say that new US tariffs have had no impact on their business last month. Just 3.4 percent say they have created extra costs, fewer than any comparable business sector. New US tariffs may have dealt less of a blow to the UK transport and storage sector than first feared, says the international delivery expert ParcelHero.

The latest Office for National Statistics (ONS) Business Insights Survey reveals that 82 percent of the UK’s transport and storage sector businesses (the category that includes logistics, parcels, haulage, and warehousing firms) say that the new US trade tariffs have had no impact on their business during September. Only 3.4 percent of transport and storage companies report that they experienced extra costs because of the tariffs, compared to 6.3 percent of UK retailers and a significant 11.5 percent of UK manufacturers.

The international delivery expert ParcelHero says that, now the shock waves are subsiding, transport and storage sector businesses appear – on the surface – to have been less impacted than expected by this year’s new US tariffs. The storm of new tariffs started with US President Trump’s “Liberation Day” tariff hikes on 2 April.

ParcelHero’s Head of Consumer Research, David Jinks M.I.L.T., says: ‘The latest Business Insights Survey, held between 15 and 28 September, reveals that the impact of new US tariffs did not have the disastrous consequences for UK transport and storage sector firms that some experts had feared. Remember, these responses also follow the ending of the USA’s de minimis exemption on low-value goods on 29 August. Before this date, goods valued at US$800 (around £600) or less could enter the US duty-free from the UK and many other countries. We might have expected the ending of this loophole to have had a more significant impact.’

“Other industry sectors have had to respond in different ways to the introduction of the new tariffs. For example, 3.9 percent of UK retailers and a hefty 8.6 percent of manufacturers reported that they had passed on the impact of the new tariffs to their customers – presumably those based in the US. However, no transport and storage sector firms who responded said that they had taken this measure.’

“That’s not to say that the new “Trump tariffs” have not affected UK businesses as a whole. It remains to be seen what their full impact will be. Britain successfully negotiated a 10 percent tariff deal, which is the lowest tier of duties imposed by the US, largely because of the near parity in the US–UK trade balance. Even so, an increase of 10 percent has been enough to significantly reduce demand in some sectors. For example, due to US tariffs, 12 percent of manufacturers and 4.2 percent of retailers reported reduced demand for their products in September, leading to a 3.3 percent fall in demand for transport and storage companies’ services.’

“The US is Britain’s largest single overseas market and, last year, around 39,500 UK VAT-registered businesses exported goods there. This means any change to the trading relationship is bound to affect British companies large and small. The inevitable result of increased costs and lower demand was that some UK firms quit selling to America entirely. In September, 2.8 percent of UK manufacturers and 4.1 percent of retailers revealed they had stopped or paused their exports to the USA, though no transport and storage businesses reported having completely suspended US services.’

“Of course, we know that some major UK businesses, such as Jaguar Land Rover (JLR), were severely hit by the initial round of tariffs and were forced to temporarily suspend sales to the US while they reassessed their strategy. This is reflected in the higher level of impact from US tariffs on manufacturers and retailers compared to transport and storage companies. However, the transport and storage sector doesn’t operate in a vacuum; the success of all three sectors is woven together. Manufacturers and retailers can’t succeed without their transport and storage partners, and vice versa. Therefore, transport and storage firms will be keeping a close eye on the results of manufacturers and retailers going forward to ensure there is no further dip in UK exports to the US. There is still the possibility that this survey is merely showing the calm before the storm.”