Despite initial volatility during Trump’s announcement, sterling benefited from the UK’s comparatively lower 10% tariff rate. This more favourable treatment reflects Britain’s balanced trade relationship with the US.
“It is not just sterling strength though, it is US dollar weakness – hence the mixed performance of other GBP crosses whilst the USD is lower across the board.
“This is understandable because ultimately, US consumers and businesses shoulder the higher import costs – and US recession risks have shot up, dragging US yields lower,” George explains.
UK fintech companies may find the stronger pound advantageous for US expansion efforts while presenting challenges for dollar-denominated revenue streams.
“Sterling could continue to trade more like a relative haven in this global trade war,” George concludes.
Fintech industry reaction
As of 3 April 2025, fintech firms Tribe Payments and PayFuture have had their say on Trump’s newly enforced tariffs:
Robin Anderson, Head of Product Management at Tribe Payments
“Trump’s newly announced ‘Liberation Day’ tariffs, targeting low-cost direct-from-China ecommerce with a 30% tax on all foreign orders under $800, represent a seismic shift for cross-border commerce. Merchants shipping into the US must now factor in longer customs processing times, higher fulfilment costs, and the likely increase in customer service issues related to unexpected duties.
“With cross-border tariffs set to rise, the cost of international goods and services will climb – and merchants are already feeling the pinch. For businesses operating across borders, the increase in duties is not just a logistical headache, but a financial one, threatening already narrow margins and forcing a rethink of their operational strategies. For online sellers, the knock-on effects could include reduced cart conversions, payment disputes, and an uptick in chargebacks as shoppers react to unfamiliar charges or delivery delays.
“In this climate, intelligent payments infrastructure becomes a key competitive edge. Advanced payment routing can help merchants reduce transaction costs and avoid unnecessary fees. Faster settlements improve access to working capital, and enhanced fraud mitigation tools help protect revenue when businesses can least afford losses.”
Zaki Farooq, Chief Technology Officer and Co-Founder of PayFuture
“The reintroduction of US tariffs on low-value foreign imports, including a 30% tax on sub-$800 orders and even steeper rates for China and the EU, threatens to reshape the landscape for ecommerce and cross-border trade. For merchants reliant on low-cost international fulfilment, the loss of the de minimis exemption will directly affect margins, logistics, and the customer experience.
“As new tariffs increase the cost of global trade, businesses eyeing international growth – or already trading across borders – face mounting challenges. For retail and eCommerce merchants especially, rising duties are squeezing margins and prompting a rethink of cross-border strategies. With Shein and Temu alone accounting for nearly 600,000 daily US-bound parcels under this scheme, the impact on digital-first retail is massive. Higher prices and longer delivery times may frustrate customers, leading to more refund requests and chargebacks unless expectations are properly managed.
“In this environment, efficient international payments become a key competitive differentiator. Tariffs may be out of your control, but improving approval rates to increase your profitability, settlement delays, and currency conversion fees is not. Businesses can cut costs by optimising their payment providers, using local acquirers, and offering region-specific payment methods and currencies that improve both acceptance rates and customer satisfaction.“
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