Findings from International Trade Trends 2026: UK Manufacturers in Global Markets show rising trade barriers are driving companies to diversify export markets, reconfigure supply chains, and reassess where future growth opportunities will come from.
The US is still a major export market for UK manufacturers, with six in ten trading there, but the immediate and anticipated effects of tariffs are already being felt.
One in four manufacturers report balance sheet losses linked to added costs arising from US tariffs, while nearly a quarter say they accelerated exports to the US in the early months of 2025 to try to beat anticipated tariff increases.
At the same time, firms are reducing risk exposure: nearly a quarter are pivoting toward non-US markets, while one in five have already cut back or halted exports to the US. In contrast, a quarter of exporters report carrying on with their US trade plans without adjustment.
While the US remained the second-most attractive growth market at the time of the survey, more recent sentiment points to manufacturers placing greater emphasis on opportunities in Asia and Oceania.
Beyond the US, the research shows deep-rooted trade barriers, with eight in ten firms affected by tariffs, 58 per cent citing trade rules as major export obstacles, and half reporting customs delays, paperwork burdens and inconsistent guidance.
Despite these pressures, manufacturers remain cautiously optimistic, with almost eight in ten saying they are confident in the UK’s overall trade prospects.
While concern about the level of global competition is near universal among manufacturers (87 per cent), they also believe Britain has a strong manufacturing reputation globally, with 85 per cent of respondents saying they emphasise the ‘Britishness’ of their product or company.
In a statement, John Cornish, CEO, DHL Express UK, said: “At DHL Express, we see firsthand how important it is for manufacturers to navigate tariffs, customs complexity, and shifting trade rules with confidence. With the strength of British manufacturing and the right support in place, UK exporters remain well positioned to compete globally, even in a more fragmented trading landscape.”
To ensure the UK’s trade approach reflects today’s challenges – including tariffs and other barriers – Make UK is calling for a renewed focus on helping businesses navigate global markets.
“The research shows that UK manufacturers aren’t retreating from global trade, they are recalibrating,” said Cornish. “After years of disruption, businesses are taking a more deliberate and strategic approach to where and how they export, balancing risk while still pursuing growth overseas. In this context, we’re seeing British manufacturers diversify to a certain extent and strengthen trade with countries that pose less geopolitical risk or that benefit from trade agreements with the UK.”
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