Michael Ekpechue, director of Adanian Labs UK, has expressed concerns regarding the financial implications that Donald Trump's recent tariff imposition on UK goods is having on his business. The 10 per cent tariff was announced by Trump earlier this week as part of a broader trade policy themed around 'liberation day,' which includes levies on a range of countries worldwide. Speaking to the Manchester Evening News, Ekpechue revealed that his company has already faced significant financial burdens due to previous cuts to the United States Agency for International Development (USAID), which he claims have cost them "tens of thousands of pounds."
The USAID is a governmental body responsible for providing international aid for countries in need, focusing on disaster recovery, poverty alleviation, and democratic reforms. Ekpechue noted that the dismantling of USAID has directly affected funding streams critical to his company, prompting the need for a strategic reevaluation. He stated, "With USAID, we didn't see it coming so we didn't make plans for it. That meant we had to downsize, we had to go back on some projects, we had to re-strategize."
The current tariff poses additional challenges for Adanian Labs, whose services extend across Africa, the UK, and America, with offices situated in various countries, including Kenya, Nigeria, Tanzania, and Zambia, as well as in Salford Quays. He elaborated on the repercussions of the tariff, explaining that it raises operational costs for their offerings. "It means that things will be more expensive. We're still going to be in the market, but it just means that people using our services will have to pay more," he said. For instance, a subscription that previously cost £2 may now increase to £5, while American counterparts could provide a similar service for a lower price due to the absence of a tariff.
Despite these obstacles, Ekpechue maintains an optimistic outlook regarding the future of his business in the American market. He noted, "From the few meetings we've had with the other directors, we still see the American market as a very vital market, the same way we see the UK." He emphasised the importance of adaptability and finding alternative strategies to thrive amidst economic challenges.
Ekpechue also commended the response from UK Prime Minister Sir Keir Starmer to the newly imposed tariffs, highlighting the importance of a measured approach rather than retaliation. Starmer's statement indicated a preference for a calm and collected response in the best interests of the country, a sentiment that Ekpechue echoes. He articulated the need for strategic thinking in such situations, remarking, "It's important not to rush into decisions and I think the UK has shown a high level of maturity with the way Keir Starmer has reacted."
As of now, Adanian Labs in Greater Manchester has not seen any job losses and Ekpechue assures that they do not intend to downsize further. "We learned a very good lesson with the USAID, and we're prepared for everything else that will happen," he remarked, expressing confidence in the company's resilience against future challenges.
Source: Noah Wire Services