America remains a growth market for British businesses, but slower corporate profits, sticky inflation and a patchwork of state-level rules mean the bar for success has been raised, according to leading audit, tax and advisory firm Blick Rothenberg.
The United States is still expanding, but the easy tailwinds that once carried ambitious British exporters across the Atlantic are fading. Fresh figures from the US Bureau of Economic Analysis show real GDP grew at an annualised rate of 1.6 per cent in the first quarter of 2026, with real final sales to private domestic purchasers up 2.4 per cent, a sign that households and businesses are still spending, even as profit growth softens.
For UK firms weighing an American push, the message from Blick Rothenberg is blunt: the opportunity is real, but the margin for error is narrower than it has been for some time.
A growth market, but a tougher one
Michael Holland, Partner and Lead for US Expansion at the firm, said the latest BEA data confirms the US remains a viable growth market for UK exporters and investors. “The US economy is still growing, with GDP expanding at an annualised rate of 1.6 per cent in Q1 2026. Core domestic demand is still holding up, with real final sales to private domestic purchasers rising 2.4 per cent, which suggests customers and businesses are still spending. However, with inflation remaining elevated and corporate profit growth slowing sharply, the bar for success is rising.”
His comments land against a backdrop of rising friction in the transatlantic trade corridor. According to the Office for National Statistics, UK goods exports to the US have been volatile since Washington introduced its latest round of tariffs, with sharp month-on-month swings as British exporters rework supply chains and pricing.
America is not one market
Holland is clear that the most common strategic mistake is treating the US as a single, uniform target. “British firms’ strategy to succeed in this environment needs to start with recognising that the US is a very large and highly varied country, not one single uniform market,” he said. “Successful expansion strategies usually focus on specific regions first, whether that is the East Coast, the Pacific North West, the North East or the central states — rather than trying to target the entire US at once.”
For founders looking at where to plant a flag, the practical questions are familiar to anyone who has crossed the Atlantic before: is there genuine demand, what does the local tax and regulatory mix look like, and how do tariffs and operating costs reshape the unit economics? As Business Matters has explored in its guide to key strategies for UK tech companies expanding to the US, local hiring, partnerships and a region-first mindset routinely separate the winners from the costly retreats.
Pricing, routes to market and the cost of getting it wrong
Holland argues that British firms need to be far more disciplined about pricing and capital allocation before they commit. “Firms need to test whether there is a genuine customer base for their product or service, decide which areas offer the best fit, and understand how local rules, taxes, tariffs and operating costs could affect margins,” he said. “They also need to think carefully about pricing, routes to market and how much investment is needed before the business becomes commercially viable.”
That diagnosis chimes with wider advice on market entry during international expansion, which routinely flags under-pricing and under-capitalisation as the silent killers of overseas ventures.
For SMEs in particular, the temptation to chase headline US revenue without a hard look at landed cost, state sales tax exposure and distribution economics can quickly turn a promising launch into a cash drain.
Pulled into America, not pushed
The most resilient UK entrants, Holland suggests, are those responding to demand rather than chasing it. “The British businesses most likely to succeed are often those being pulled into the US by real customer demand and that have a well thought out strategy to make the most of that opportunity,” he said.
That advice echoes the work of trade bodies such as BritishAmerican Business, whose trade and investment guide for UK firms in the US has become a standard reference point for boards weighing the transatlantic move.
The 2026 playbook
Holland’s closing message is one British founders and finance directors should pin to the wall. “The British businesses that will prosper in 2026 are those that are targeted in where they play, disciplined in how they price, and realistic about the cost and complexity of scaling in the US.”
In a year when American consumers are still spending but corporate margins are tightening, the UK firms that win in the States will be those that resist the urge to plant a flag everywhere, and instead pick their patch, sharpen their numbers and earn their growth.
