A new study has revealed that 75% of logistics businesses expect to be impacted by changes to tariffs and international trade policies. Here, Andrew Diver, Head of Tax at Beatons Group, explores how the sector is adapting under pressure.
The logistics sector is no stranger to turbulence - but the first half of 2025 has tested even the most resilient operators.
This comes as no surprise given the global reshuffling of trading relationships and the renewed uncertainty brought about by the return of President Trump and his hardline stance on trade.
While a UK-US trade agreement has now been struck - and relations between the US and China are stabilising - the aftershocks of past disruption continue to ripple through the sector.
A shifting landscape
A new HSBC UK study surveying 92 logistics firms found that 75% believe they are likely to be impacted by tariff and policy changes - and many are already adjusting their approach.
Some logistics companies are seeing reduced demand not due to tariffs directly, but because of their knock-on effect on clients. For example, if a UK manufacturer finds US tariffs have priced their goods out of the market, they may pivot to serving domestic customers instead - eliminating the need for transatlantic freight.
This means logistics firms must stay flexible. Demand won’t disappear entirely – but it may shift dramatically, and companies too focused on one international route risk being left behind.
Adapting under pressure
At Beatons, we’ve seen a surge in logistics clients seeking advice not just on accounting, but on broader strategic questions:
- How to adjust cost models in light of changing tariffs
- Whether to bring forward or delay capital investment
- The tax implications of supply chain reconfiguration
- Structuring cross-border operations to manage risk
Some firms are stockpiling or partnering with competitors to spread exposure, while others are diversifying into new geographies or service offerings. Managing workflow is also key: if remaining tariffs soften – as hinted during recent G7 discussions between Starmer and Trump – some corridors could see a rapid uptick in activity.
Advice for logistics firms
Here are three ways logistics firms can build resilience in the face of ongoing uncertainty:
1. Review contracts and pricing models
Tariffs can create unpredictable costs. Build flexibility into client contracts, with clauses that allow for renegotiation if duties change significantly.
2. Diversify supply routes and specialisms
Avoid overreliance on any single geography. If one market cools, another may open – and being agile enough to pivot quickly will give firms the edge.
3. Understand the tax consequences of change
Switching suppliers, routes or customers can have major VAT, customs, and transfer pricing implications. Engage tax advisors early to avoid unintended costs.
Looking ahead
While global trade remains in flux, logistics firms are well-placed to play a more strategic role – not just as movers of goods, but as enablers of adaptive growth.
At Beatons, we’re helping clients navigate these complexities with tailored financial and tax strategies. For bespoke advice or a free consultation, contact our specialist logistics team today.