The United States has officially imposed a 10% tariff on UK exports, marking a major escalation in global trade tensions. While Britain narrowly avoided a higher rate—such as the 20% applied to the European Union and 34% to China—this new policy could still have serious consequences for British businesses, including those in the hospitality sector.
So, what do these developments mean for hotel owners, B&B operators and independent accommodation providers across the UK?
What’s Happening with Tariffs?
President Donald Trump has launched a sweeping new trade initiative—what he calls “liberation day”—designed to impose reciprocal tariffs on dozens of countries the US believes are imposing unfair trade barriers on American goods.
In this latest move, the UK has been hit with a flat 10% tariff. While this is lower than some feared, it could still affect around £60 billion worth of British exports to the US each year. Sectors like automotive, food and drink, and consumer goods are particularly vulnerable, with British-made vehicles such as Rolls-Royce and Aston Martin now facing a 25% import duty in the US.
What It Means for the UK Hospitality Industry
You may not be directly involved in international trade, but the impact of these tariffs could ripple into day-to-day hotel operations. Here’s how:
1. Increased Costs on Imported Goods
Hotels that rely on imported US products—from tech equipment to gourmet food and beverages—may see prices rise. If your suppliers are impacted, those costs could pass through the supply chain and land on your desk.
2. Fluctuations in Currency and Demand
The US dollar dropped against the pound following the announcement. While this may benefit British travellers heading to the US, it could also reflect broader economic instability. Inflationary pressures and slower global growth may dampen consumer confidence, affecting bookings, particularly from international guests.
3. Job Market and Economic Growth Pressures
Analysts suggest these tariffs could slow UK economic growth and threaten jobs, especially if key industries are affected. This might influence domestic travel and spending habits, particularly among leisure travellers and families.
4. Indirect Political and Trade Complications
Tensions with the EU and US could resurface around Northern Ireland’s trade status and customs laws. Although UK ministers have avoided retaliatory measures so far, ongoing negotiations and political uncertainty may complicate longer-term planning for business owners.
Why It’s Not All Bad News
Despite the headlines, the UK has avoided the worst-case scenario. Ministers had feared a 20% tariff, so landing at 10% has been viewed by some as a small diplomatic win. Talks are ongoing between the UK and US to finalise a broader economic deal, which may result in reduced tariffs or sector-specific carve-outs in the coming months.
The Office for Budget Responsibility predicts that if the UK avoids direct retaliation, the impact on GDP will be smaller than originally feared—0.4% lower this year and 0.6% next year. While not ideal, this is manageable for many sectors with the right planning.
How Hoteliers Can Prepare
In a time of economic uncertainty, control over your operations is more important than ever. At Preno, we help UK hoteliers stay ahead of the curve with all-in-one property management software that simplifies operations and helps you adapt quickly.
With Preno, you can:
- Track financial performance in real time
- Adjust pricing based on changing demand
- Manage direct and third-party bookings from one dashboard
- Save time on admin so you can focus on your guests
Whether you manage a boutique hotel in the Cotswolds or a city stay in Manchester, Preno helps you navigate external challenges with ease and confidence.
Stay informed. Stay efficient. And know that even in uncertain times, you’re not navigating it alone.
