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Tariff Fears Freeze Small Business Spending

Tariff Fears Freeze Small Business Spending—How to Build Buyer Confidence in 2025

May 22, 20253 min read

By Vicky Sidler | Published 22 May 2025 at 12:00 GMT

Picture this: you’re standing at the checkout, ready to tap your card. But just before you do, someone whispers in your ear, “Prices might jump tomorrow.” What do you do? You hesitate. You second-guess. You put the product back.

That, in a nutshell, is what Sage—one of the UK’s biggest small business software providers—is seeing across its customer base right now.

What’s Causing the Slowdown?

In a recent Reuters report, Sage CEO Steve Hare summed it up perfectly:

“It’s all about confidence. Sometimes when you get noise, people then worry, and they delay their decision-making.”

That “noise” is coming from uncertainty around U.S. tariffs. Even though Sage posted strong growth—9% higher revenue for the six months to March 2025—Hare warned that small businesses have cash in the bank but are holding back on spending.

In plain English:

  • Buyers aren’t broke.

  • They’re just spooked.

And when buyers hesitate, sales stall. Even Sage’s own stock took a 5% hit after the announcement.

Why This Matters for Your Marketing:

Here’s the thing most business owners miss: confidence is a marketing problem, not just a pricing or policy problem.

If your customers are nervous about spending, it’s your job to reduce their risk—not by dropping your price, but by building trust and removing doubt.

That’s exactly what Sage is doing with its AI-powered Sage Copilot, helping 40,000 UK customers automate boring tasks so they can focus on what matters. More than 25% are already using it—proof that buyers will invest if they see clear value.

How to Help Your Customers Move From Hesitation to Action:

As a StoryBrand Certified Guide and Duct Tape Marketing Strategist, I believe every customer needs three things before they’ll pull the trigger:

  1. Clarity—so they know exactly what they’re buying.

  2. Confidence—so they believe it’s worth the money.

  3. A Clear Next Step—so they don’t overthink the decision.

Here’s how to deliver all three.

1. Tackle the “What Ifs” Head-On:

Use your next email, blog, or social post to acknowledge the elephant in the room.

Try something like:

“Worried about rising costs? Here’s why our pricing is staying stable—and how you can get the most value today.”

2. Show How You Make Life Easier:

Sage didn’t sell AI for the hype—they sold time savings.

What’s your version of that? Spell it out in plain language:

“We help you save time, reduce hassle, and get results faster.”

3. Give a Low-Risk Next Step:

Invite your audience to start small. Offer a free consultation, a sample, or a trial. Make the next step feel easy and safe.

Bring the Confidence Back to Your Marketing:

Building buyer confidence doesn’t require fancy tools or massive campaigns. It just takes a clear message, a consistent promise, and a low-risk way to say yes.

Need help making that happen? Download my free 5-Minute Marketing Fix.

 It’s a simple tool that helps you craft one clear sentence that builds trust and moves buyers to action.

Grab your free 5-Minute Marketing Fix here.

Because if there’s one thing buyers don’t need right now, it’s more noise.

blog author image

Vicky Sidler

Vicky Sidler is a seasoned journalist and StoryBrand Certified Guide with a knack for turning marketing confusion into crystal-clear messaging that actually works. Armed with years of experience and an almost suspiciously large collection of pens, she creates stories that connect on a human level.

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