It’s fair to say the business world woke up with a bit of a headache when President Trump dropped the so-called “Liberation Day” tariffs. A flat 10% slapped on all imports to the US, with even bigger penalties for some countries. The UK? We’ve landed in the 10% bucket – not as bad as China or the EU, but still enough to make any exporter wince.
Now, while that news might spark panic in some corners, the Gatwick Diamond is not just any region. It’s a powerhouse – full of clever people, world-class firms, and serious international clout. Yes, these tariffs are a curveball. But they’re not the end of the story.
Here’s the reality: tough times call for smart moves, and this region has plenty up its sleeve.
Let’s be honest. A 10% hike on the cost of UK goods entering the US stings, especially for export-heavy sectors like aerospace, advanced manufacturing, and life sciences, which are major players in the Gatwick Diamond. These industries rely on finely tuned global supply chains and price-sensitive customers. Add in existing US tariffs on steel, aluminium, and autos, and you’ve got a pretty unpleasant cocktail for many firms here.
| Sector | Prominent Businesses in Gatwick Diamond | Potential Vulnerability to US Tariffs | Specific Potential Impacts |
| Life Sciences/MedTech | Pfizer, Elekta Oncology, Roche Diagnostics, Siemens Healthineers | Medium | Increased costs of imported components and manufacturing equipment; uncertainty about future tariffs on finished pharmaceuticals. |
| ICT/Technology | Medium | Higher costs for imported electronics and components from countries facing higher reciprocal tariffs. | |
| Advanced Manufacturing & Engineering (incl. Aerospace) | Thales, Vent Axia, Tesla Engineering, Sony, Siemens, Boeing supplier Exactaform | High | Increased costs due to 10% baseline tariff and 25% tariffs on steel and aluminum; reduced export competitiveness; potential shift of production. |
| Professional/Financial Services & FinTech | American Express, Deloitte, HSBC, KPMG | Low | Indirect impact from overall economic slowdown and reduced investment. |
| Aviation | Gatwick Airport, Thales, Smart Aviation, AerFin | Medium | Potential decrease in passenger and freight volumes due to economic downturn; challenges for aerospace manufacturing and training. |
| Food Manufacturing & Viticulture | Nestlé, Unilever, Yoplait, Ridgeview Vineyard | Medium | 10% tariff on food and drink exports to the US; increased costs for imported ingredients; potential impact on smaller businesses and wine exports. |
But this isn’t the Gatwick Diamond’s first challenge. This region has long attracted global investment thanks to its unbeatable location, skilled workforce, and tight-knit business ecosystem. We’re home to giants like Thales, Pfizer, Siemens, Deloitte, and American Express – and let’s not forget the tens of thousands of small and mid-sized firms that keep the wheels turning. That kind of economic depth doesn’t vanish overnight.
The real question is: how do we respond?
Playing smart: resilience, not retreat
A 10% tariff across the board means UK goods are now more expensive in the US. That could dent demand, delay deals, or even push some investors to look elsewhere. But that doesn’t mean we fold. It means we adapt.
What’s happening now is a bit like trade Jenga. You pull out a key block, and things wobble. But with the right support, the whole structure doesn’t have to topple. For the Gatwick Diamond, that support comes in several forms:
- Diversify export markets – If the US has become pricier to sell into, it’s time to look harder at opportunities in Europe, Asia, and emerging markets. Many companies are already doing this, but now it needs to become a core part of the strategy, not just a ‘nice to have’.
- Strengthen local supply chains – Relying less on imported components subject to tariffs just makes good business sense now. That means building up stronger regional networks and partnerships. A bit more “Made in the UK” could go a long way.
- Invest in innovation – Tariffs make price competition harder. So, make your products better instead of cheaper. Value-added products, cutting-edge tech, niche expertise – these are areas where the Gatwick Diamond already shines. Time to double down.
- Promote the region hard – Despite the headwinds, the Gatwick Diamond still has a great story to tell. Stellar connectivity via Gatwick Airport, proximity to London, and strong industry clusters all make it a compelling place for investment. That message needs to be loud and clear, especially to global firms reassessing their strategies.
- Use Foreign Trade Zones (FTZs) – These can help firms manage tariff exposure and streamline customs processes. It’s time to explore how FTZs can be part of the local investment toolkit.
A region built to prosper
It’s worth remembering that resilience isn’t about avoiding knocks – it’s about bouncing back stronger. Around the world, regions that have successfully weathered trade shocks have one thing in common: they adapt fast. They collaborate. They back their businesses. And they keep investing in what makes them strong.
The Gatwick Diamond has the ingredients to do just that. It already boasts a thriving ecosystem of collaboration between local councils, universities, industry bodies, and businesses. There’s a genuine appetite here to support innovation, back entrepreneurs, and attract smart money.
And it’s not all just defence. Some sectors could even see short-term gains if the US starts importing less from other high-tariff zones, like the EU. But that’s a bonus, not a strategy. The focus needs to be on sustainable, long-term growth, not tariff whack-a-mole.
So, what now?
As business leaders in the Gatwick Diamond, there is a lot we can do together. Act. We can look at our supply chains. We can talk to your trade advisers. We can research new markets. Reassess where we’re sourcing, selling, and investing. There are grants, networks, and support services out there – and now’s the time to use them.
If you’re in Government or a local authority, keep pushing for clarity and fairness in trade negotiations. But also get proactive locally. Help businesses diversify, boost infrastructure, and shout about what makes this region great.
Because here’s the truth: the Gatwick Diamond doesn’t need to wait for the storm to pass. We have everything we need to move forward – tariffs or no tariffs.
In short? This is a challenge, yes. But it’s not a crisis. And for a region as forward-thinking, connected, and enterprising as the Gatwick Diamond, this could even be the moment to show the world exactly what we’re made of.