• 1 in 5 UK manufacturers have reduced or ceased exports to the US

• Almost 1 in 4 accelerated shipments to the US to beat tariffs

• 23% have redirected export focus towards non-US markets

• 8 in 10 remain confident in the UK’s overall trade outlook

• 85% highlight the ‘Britishness’ of their products or business in global markets

Sweeping tariffs and shifting trade policies are prompting UK manufacturers to reassess their global strategies, as rising costs, uncertainty and border friction reshape the international landscape, according to new research by Make UK and DHL Express.

The 2026 edition of International Trade Trends: UK Manufacturers in Global Markets reveals that growing trade barriers are driving companies to diversify their export destinations, restructure supply chains, and rethink their paths to future growth.

The United States remains a significant export partner, with six in ten manufacturers currently trading with the US. However, the impact of tariffs is already reverberating across the sector.

One in four firms report financial losses tied to increased costs from US tariffs, while nearly a quarter fast-tracked exports to the US in early 2025 to get ahead of anticipated tariff hikes.

Simultaneously, companies are rebalancing their exposure. Almost one in four have shifted their export focus away from the US, and one in five have either reduced or stopped US exports altogether. An additional 16% plan to follow suit. In contrast, a quarter of exporters are maintaining their US strategies unchanged—highlighting the diverse responses within the sector.

This changing sentiment reflects a broader trend: while the US was still viewed as the second-most attractive growth market at the time of the survey, manufacturers are increasingly eyeing opportunities in Asia and Oceania. Nonetheless, the US remains an important player in the UK’s export mix.

Beyond the US, the research spotlights wider structural hurdles. Eight in ten manufacturers report being affected by tariffs in some form, and 58% cite tariffs and trade rules—such as rules of origin—as major export barriers. 50% also point to customs delays, exacerbated by inconsistent procedures, burdensome paperwork, and unclear guidance.

Despite these pressures, confidence persists. Nearly eight in ten manufacturers remain optimistic about the UK’s overall trade prospects, underscoring a continued appetite to compete internationally—even amid a more fractured and uncertain trading environment.

Concern about global competition is near-universal, with 87% of manufacturers flagging it as a key issue. Yet confidence in the UK’s manufacturing brand remains strong: 85% of companies say they actively promote the ‘Britishness’ of their products or business abroad.

Stephen Phipson CBE, CEO of Make UK, said:

“UK manufacturers’ ability to trade goods and services globally is under growing strain from a combination of higher tariffs, geopolitical pressures, and the need to adapt to a rapidly changing global environment.

Tariffs and trade friction in global markets are creating uncertainty and disrupting long-standing customer and supply chains. Many businesses are responding by diversifying exports, adjusting supply chains, or scaling back activity to manage rising costs and delays.

Despite these challenges, manufacturers remain ambitious and outward-looking. We fully support the Government’s strategy to adopt a trade approach that strengthens the UK’s global competitiveness and supports more seamless and certain trading relations with our long-term partners.”

John Cornish, CEO of DHL Express UK, added:

“The research shows that UK manufacturers aren’t retreating from global trade, they are recalibrating. 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.

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.”

The survey also reveals a significant uptick in plans to source materials domestically. 63% of manufacturers expect to increase domestic sourcing over the next five years—up from 49% since 2020—as firms seek to bolster resilience, control costs, and reduce risk.

However, turning confidence into growth will require more targeted support. More than half of manufacturers are calling for increased export assistance from government. 38% cite access to logistics partner services as a priority, while 36% identify customs support as a key need.

The findings paint a picture of a sector evolving—not retreating. UK manufacturers are adapting to the new global trade order through pragmatic strategy shifts. Yet without action to ease friction and provide stronger practical support, the cumulative burden of tariffs, complexity and uncertainty could stifle long-term growth.

Make UK is urging a renewed policy focus to help firms navigate global markets—ensuring ambition is matched by delivery so that UK manufacturing remains a competitive force worldwide.