UK companies slashed costs ahead of US trade tariffs announcement in early April

According to a recent Deloitte’s survey conducted March 18–31, major UK companies adopted a defensive stance ahead of US President Donald Trump’s April 2 tariff announcement. They focused on boosting cash flow, cutting costs, and reducing borrowing.

During the survey period, around 63% of UK CFOs cited cost reduction as one of their top priorities. Meanwhile, only 20% of respondents said launching new products and expanding into new markets was a key focus, Deloitte notes.

According to the consulting group’s experts, UK businesses are bracing for a challenging year ahead. Companies across the country anticipate hiring slowdowns and declining profits due to tax hikes and increases in the minimum wage.

Against this backdrop, economists have halved their UK GDP growth forecast for 2025 to just 1%. They pointed to the ineffectiveness of fiscal stimulus measures following 2024's weak performance, Reuters highlights.