Manage changing US tariffs with Sage, SAP and Avalara: advice for SMEs

Last updated on 10 April 2025, 14:30pm BST. We’re monitoring the information surrounding this topic and updating this blog accordingly. 

Announcements from the US of new import tariffs have shaken up global trade. While the tariffs imposed for each country by the Trump administration are still being fine-tuned on a case-by-case basis, the broader message is clear: tariffs are back on the menu.  

From the FTSE 100 to the TSX Toronto Stock Exchange, the announcements over the past week have sparked widespread market uncertainty. In times of choppy waters, UK and Canadian SMEs need to adapt quickly – and that’s where smart technology comes in.  

In this blog, we’ll take you through the current situation, and how it could affect UK and Canadian SMEs. We’ll then explore how technology can help you to manage this complexity in the current climate. 

The global impact: What’s happening with US tariffs?

As of 10 April 2025, the US now has a 10% baseline tariff on all imports from all countries globally, with some exemptions: semiconductor chips, pharmaceuticals, lumber, copper, energy and minerals that are not harvestable in the US. The UK is included in a lower levy 10% baseline tariff. 

Some goods are more targeted than others, such as steel and aluminium, which have been labelled with a 25% tariff, and some countries have been selected for higher tariffs than others. The likes of Mexico and Canada are faced with the 25% levy, while China leads the way currently on the hardest hit, as goods arriving from the second largest economy to US soil are slapped with a whopping 125% import tariff.  

There’s also been a 90-day pause for some of the countries that fall within or above the 25% tariff bracket, although Canada is not pardoned. 

What do US tariffs mean for UK businesses?

The US is an important marketplace for thousands of UK businesses, as they exported just under £60bn worth of products to the US last year (source: ONS). With a 10% tariff now promised, UK business owners are exploring whether the US market is one to deal in at all. Either way, while the tariffs look set to stay, it’s important to gather an understanding of what positives can come from the latest changes, or what to avoid. 

Let’s start with the negatives that businesses in the UK are now weighing up. To start, it’s about revising any international growth plans that were budgeted for. Expansion into the US may have to be put on pause, at least until the uncertainty that the tariffs have presented becomes clearer. In the meantime, fine details will need to be explored, to see how your industry exports are impacted. 

For those that rely heavily on the US market, it could result in a rise in costs for other more defined and reliable markets to share the tariff burden.  Doubling down on these more reliable markets may have to take place, while pulling out of other uncertain markets, along with the US, is also an option.  

It does present opportunities, too. With the UK hit with the lower 10% end of the tariffs, it’s half that of some of the big European Union players, where the likes of Germany and France face a 20% tariff. As businesses from these markets are more likely to shy away from dealing with the States due to even stricter price increases, that opens opportunities for UK businesses. It is sector dependant, however, so be sure to weigh this up when looking at potential revenue-generating avenues. 

What do the tariffs mean for Canadian businesses?

Canadian businesses have been caught in the crosshairs of a trade war. It’s been chaotic, as tariffs addressing the Canadian market have been announced, delayed, changed, re-announced and re-structured; all since the start of the year. The Canadians matched the 25% tariff placed on their market, leading to fewer goods on both shelves either side of the boarder.  

In Canada, we’re already seeing tariffs impacting the bottom line for a variety of goods from sectors such as retail and manufacturing. More and more businesses are shying away from dealing with the US, exploring other alternatives.  

For those that are heavily embedded in the US marketplace, which is a substantial proportion of Canadian businesses given that £2.7 billion worth of goods went back and forth over the boarder daily in 2023 (source: Government of Canada), compliance has changed like the weather, so it’s placed extra pressures on finance teams across the country.  

How technology can help SMEs remain competitive and compliant

Real-time visibility with SAP and Sage

With Enterprise Resource Planning (ERP) systems like Sage 200, Sage Intacct and SAP Business One, SMEs in the UK and Canada can benefit from a great platform for managing your business finances and operations, areas of any business that can be enhanced by Avalara’s global compliance solutions for navigating recent tariff changes. These platforms help businesses model cost scenarios, manage suppliers and adjust pricing strategies – another critical capability in a tariff-shifting environment. 

You’ll have all the information needed to make a calculated decision about your business’ next move. 

Automated compliance with Avalara

Integrating these technologies with Avalara’s automated tax compliance software will only strengthen your capability. Avalara’s cross-border compliance tools integrated with Sage or SAP systems can take the complexity out of customs, tariffs and VAT.  

Avalara automates landed cost calculations, tariff code lookups, and customs document generation – so whether you’re active in the US market or weighing up other international opportunities, it reduces the risk of errors and penalties. This’ll help you to reclaim control over the ever-changing compliance brought about by the latest tariff introduction. 

Together, these technologies provide an integrated view of financials, logistics and compliance. This’ll make it easier to pivot on business strategy, evaluate supplier alternatives and respond to the changing tariffs – all without manual spreadsheets or guesswork. 

To dive deeper into how these tools work together, check out our recent webinar with Avalara, where we show how automation can support your compliance when trading with international markets.

• Watch now: Making tax simple: Ensuring global compliance in 2025 with Avalara.

Adapt with agility with Thinc

Whether you’re a Canadian SME cautiously eyeing what happens next, or a UK business already feeling the ripple effects, the message is the same: stay informed, stay agile and invest in the tools that make compliance and cost management easier.  

By leveraging the power of Sage, SAP and Avalara, SMEs can weather tariff changes and keep growing – no matter what comes next. At Thinc, we have expertise with implementing and integrating your core business applications with tools such as Avalara to give you the big picture. 

For more information on any of the solutions presented in this blog, or how your organisation can continue to scale in times of uncertainty with the power of technology, get in touch – we’re always happy to help.