A joint study by Make UK and DHL Express found that 20 per cent of UK factories have already stopped or reduced exports to the US in response to tariff uncertainty. A further 16 per cent said they plan to reduce their reliance on the American market, meaning more than a third of manufacturers now view US tariffs as having a negative impact on their business.
The report also found that many British factories rushed shipments into the US in early 2025 to beat a potential rise in import levies, highlighting the stop-start nature of trade policy over the past year.
Trump has imposed a blanket 10 per cent tariff on UK imports, one of the lowest rates applied to any country. However, Britain was among a group of nations threatened with tariffs as high as 25 per cent if they opposed Trump’s stance over Greenland, a move he later rowed back after discussions with Nato allies at the World Economic Forum in January.
Stephen Phipson, chief executive of Make UK, said the constant shifts in trade policy were forcing manufacturers to rethink long-established relationships.
“Tariffs and trade friction in global markets are creating uncertainty and disrupting longstanding customer and supply chains,” he said. “Many businesses are responding by diversifying exports, adjusting supply chains or scaling back activity to manage rising costs and delays.”
John Cornish, chief executive of DHL Express UK, said manufacturers were adapting rather than abandoning international trade altogether.
“The research shows that UK manufacturers aren’t retreating from global trade, they are recalibrating,” he said. “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.”
Despite the pullback, the US remains a critical market for British industry. The study found that 60 per cent of manufacturers continue to trade with America, underlining its importance as an export destination.
However, the uncertainty is accelerating a shift towards sourcing closer to home. So-called “friendshoring” and “nearshoring” are gaining momentum, with 63 per cent of manufacturers saying they expect to buy more UK-produced inputs over the next five years, up from 49 per cent in 2020.
The findings suggest that while US trade remains vital, tariff volatility is reshaping how and where British manufacturers sell and source, with long-term implications for export strategy and domestic supply chains.
Jamie Young
Jamie Young is Senior Reporter at Business Matters, covering SME finance, employment law and Westminster policy since 2016. He has reported on every Budget and Autumn Statement since 2018, helped make sense of the 'covid era' and the bounce-back loan scheme from launch through the fraud investigations, and broke the magazine's coverage of the 2024 late-payment reforms. He joined Business Matters straight from completing his BA in Administration from Exeter University and is NCTJ-qualified. Reach him at jyoung@cbmeg.co.uk
