Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

US tariffs drive invoice rejections to record highs as businesses scramble to preserve cash

by May 19, 2025
May 19, 2025
US tariffs drive invoice rejections to record highs as businesses scramble to preserve cash

Global businesses are delaying payments and rejecting invoices at record levels as they react to escalating trade tensions and cost uncertainty sparked by President Trump’s tariff policy, according to new data from Basware.

The invoice processing firm reported that 2.9 million invoices were rejected globally in the first quarter of 2025 — an increase of 2 million compared to the same period last year. The total rejection rate surged to 7% of all invoices, up from just 1.9% a year earlier, signalling mounting financial strain across international supply chains.

According to Basware, the spike in rejections is directly linked to the April 2 announcement of sweeping US tariffs, which have disrupted trade relationships and led many businesses to renegotiate contracts, defer payments, and reassess supplier terms.

“The reality is that the US tariff policy is creating huge strains for international trade, hitting business finance teams hard,” said Jason Kurtz, CEO of Basware. “Companies are using payment delays as a financial buffer against wider economic uncertainty.”

Invoices denominated in US dollars were particularly affected, with rejection rates climbing from under 1% in 2024 to 11% in Q1 2025. Basware noted that US importers have become increasingly cautious, rejecting bills from overseas suppliers as they reassess the viability and costs of existing contracts.

Businesses can reject invoices for multiple reasons, including pricing disputes, incorrect tax details, or as a temporary measure to preserve liquidity amid uncertainty.

Despite the volatility, overall transaction volumes rose 5%, as companies attempted to stockpile goods ahead of expected tariffs. US imports surged by 41%, led by metals and pharmaceuticals, as importers raced to beat the April 2 deadline.

On April 9, the Trump administration announced a 90-day pause on new tariffs for more than 100 countries, and last week confirmed that tariffs on Chinese imports would be set at 30%, down from the initially proposed 145%.

The UK was the first to secure a partial exemption, winning zero tariffs on imported steel and aluminium and a reduced 10% tariff on cars, down from a proposed 27.5%. However, the US will maintain a 10% base tariff on all other UK imports.

According to Allianz Trade, the effective US tariff rate on UK goods will rise from 1% before Trump’s presidency to 6.1%, even after the revised agreement. Without the exemption, the effective rate would have been 9.1%. Despite the concessions, the UK still faces an estimated £2.3 billion export loss, while US exporters stand to gain around $700 million through enhanced access to the UK market.

The broader impact of these trade disruptions is now being felt in boardrooms and finance departments around the world, as companies reassess their exposure and implement short-term cash preservation strategies — with invoice rejections becoming a clear sign of the strain.

As policymakers and negotiators grapple with the longer-term implications of protectionist trade policies, the private sector is already adapting in real time — and for many, that means rethinking how and when they pay their bills.

Read more:
US tariffs drive invoice rejections to record highs as businesses scramble to preserve cash

0
FacebookTwitterGoogle +Pinterest
previous post
Small business debt load doubles since pandemic, hampering access to finance
next post
UK inflation set for sharp rise in April after surge in household bills

You may also like

Next abandons Joules takeover talks

September 14, 2022

Business Champion Awards is a finalist in the...

May 22, 2023

Drones could soon be making urgent medical deliveries...

February 20, 2024

Northern Arc: Liverpool and Manchester set to unite...

March 13, 2025

10 Influencer Marketing Tactics to Amplify Your Brand’s...

November 22, 2022

Top 5 Cyber Trends to Track in 2025

January 27, 2025

Childcare costs ‘soaring by £600-plus a month’ as...

September 28, 2023

GrandNanny Raises £400,000 in Pre-Seed Round

November 9, 2022

Elon Musk blames ‘massive’ cyberattack for X outage

March 11, 2025

Everyday Cryptocurrency Transactions in the UK

September 12, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Revealed: The extensive perks UN officials receive amid budget crisis

      June 29, 2025
    • Trump administration takes on new battle shutting down initial Iran strike assessments

      June 29, 2025
    • Trump administration takes on new battle shutting down initial Iran strike assessments

      June 29, 2025
    • Schumer forces reading of Trump’s entire ‘big, beautiful bill’ as Senate braces for all-nighter

      June 29, 2025
    • Schumer forces reading of Trump’s entire ‘big, beautiful bill’ as Senate braces for all-nighter

      June 29, 2025
    • Trump, lawmakers react after ‘big, beautiful bill’ clears Senate hurdle

      June 29, 2025

    Categories

    • Business (8,334)
    • Investing (2,081)
    • Politics (15,858)
    • Stocks (3,177)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved