US tariffs 'painful' for some but 'opportunities' for others

Donald Trump's 10% tariffs on imports to the US could spell the end of one Welsh company's sales there but could present opportunities for others, businesses have said.

Anglesey's Halen Môn has been exporting salt to America since 2000, according to managing director Alison Lea-Wilson.

But the company's products already cost two or three times more there than in the UK, she told BBC Radio Wales Breakfast.

Halen Môn's salt goes through an importer, distributor, wholesaler and retailer before reaching US shoppers, and adding 10% might be "the straw that breaks the camel's back," Ms Lea-Wilson said.

Trump announced a 10% tariff on all imports from the UK and many other countries from 5 April which he said was necessary to protect American jobs and manufacturing.

Companies that bring foreign goods into the US have to pay the tax to the government, but it could also affect consumers if those costs are passed on to them.

Donald Trump has imposed new tariffs on all goods entering the US in what has been described as a "major blow to the world economy"

Ms Lea-Wilson said Halen Môn's distributor told her they were "upset" and taking legal advice to see how they could help her business.

"It's very painful... because some of our customers are now friends," she said.

Halen Môn was used on chocolates which were President Obama's favourite.

"He used to give them to all his visitors at the White House," Ms Lea-Wilson said.

'Specialist products will sell'

Newport-based company Tomoe Valve, manufacturer of butterfly valves which are used in pipelines and sold around the world, said they were less concerned.

The firm hit £6m in sales in 2024-25, and its biggest order worth £1.2m ($1.6m) came from the US - a huge valve for a battery plant.

Financial director Denise Cole said she did not want tariffs but understood why Trump had introduced them.

"He's looking after his own, which is exactly what it says on the tin with Trump," she said.

She said there was panic over tariffs, but the changes could be "short-lived".

"I really don't think it's going to impact us in a negative way," Ms Cole added.

"The specialist products we sell, they don't manufacture in the US anyway, they would struggle to get them elsewhere."

Patrick Dodds from Hexigone Inhibitors says the tariffs could present opportunities

Patrick Dodds from Hexigone Inhibitors in Baglan, Neath Port Talbot, also believed the tariffs were an opportunity.

The company, which makes a paint additive which prevents rust and sells to different regions, already deals with multiple tariffs.

"Although it's relatively expensive to manufacture products here, what the tariffs on the other countries will do is maybe level up that that playing field that makes your products more commercially viable," he said.

In 2023, the US became Wales' highest-value export market, accounting for £2.9bn, or 15%, of exports - mainly machinery and transport equipment.

Prof Max Munday from Cardiff University's Business School said the tariff structure would bring an increase in costs for Welsh manufacturing through the supply chain.

"This announcement will reduce confidence. It will increase uncertainty and I think it will hit business investment decisions," he said.

But the US market will continue to be important for Wales, he added.

Entrepreneur Alan Peterson has run companies across the UK, Europe and north America and dubbed indiscriminate global tariff enforcement "brainless".

"I can only hope it is a sledgehammer attention-grabbing move which then settles down to more specific targeting," he said.

He argued US productivity had been poor across numerous industries for a long time, which is why imports had thrived.

John Hurst, of the Federation of Small Businesses in Wales, said tariffs posed "an immediate challenge" and potential damage for small firms was "significant".

"The scale of this emerging challenge necessitates targeted support from the Welsh government, including resource for Business Wales to expand their trade advisory services to provide guidance on navigating these new trade barriers and diversifying markets," he said.

Wales cabinet secretary for economy, energy and planning, Rebecca Evans, said: "Whilst it is a small relief to see that the tariffs that will be applied to imports from the UK are lower than some other trading countries and blocs, such as the EU, I remain deeply concerned about the impact that they will have on our businesses in Wales."

The Welsh government, she said, was nurturing close trade links and economic opportunities with the US and was "determined" they would prosper.

She said she was hopeful the UK government would be able to strike a deal with US to lower tariffs.

"We remain in close contact with the UK government as the situation develops," she said.

Analysis - Huw Thomas, BBC Wales business correspondent

A worrying period has begun for Welsh businesses as the shockwaves from President Trump's new tariffs will touch far more than those companies who export goods to the United States.

And yet there is a sigh of relief from some who feel the UK escaped lightly – compared to our biggest trading partner, the European Union – by receiving a tariff of 10%.

It's little comfort to some specific sectors of the Welsh economy. The existing tariff of 25% still applies to metals imported to the USA, such as steel and aluminium.

There's also a threat to Welsh firms in the car parts supply chain, which is expected to feel the impact of the new 25% tariff on vehicles.

'"Keep calm" is the mantra from the UK government as it considers how to respond to the new American tariff regime.

It's a mantra that business leaders appear willing to accept for the time being.

While there's a wait-and-see element to the impact of the tariffs, businesses already know that any additional cost or complexity is a barrier to growth.

There are also broader concerns about the re-routing of goods which, faced with US tariffs, may enter the UK market and undercut local suppliers.

While the tariffs will be paid by businesses to the US, the impact of higher costs will be felt ultimately by consumers on both sides of the Atlantic.