British manufacturers are increasingly withdrawing from the United States as a primary export market amidst escalating trade uncertainty and punitive tariffs linked to former President Donald Trump’s protectionist policies.
In a significant shift, the United States has dropped out of the top three markets where UK manufacturers plan to do business, according to Make UK’s latest quarterly survey. This change reflects mounting concerns within the sector about the impact of American trade policies on longstanding transatlantic business relationships.
Make UK’s survey of its 20,000 corporate members, conducted with accountancy firm BDO, revealed that 60% of UK manufacturers anticipate negative impacts on their business due to [Trump-era tariffs](https://bmmagazine.co.uk/news/britain-closes-in-on-deal-with-us-to-end-tariffs-on-steel-exports/). Only 4% plan to invest in or expand operations in the US, underscoring a steep decline in confidence.
The economic outlook is already challenging, with British manufacturers facing persistent inflationary pressures, especially from surging energy costs. Make UK warns that these factors could push the UK towards “de-industrialisation”.
In response to these pressures, Make UK has lowered its forecast for UK manufacturing growth, predicting a contraction of 0.2% in 2025, following stagnant growth in 2024. This is a marked reversal from earlier projections of modest recovery. The 2026 forecast has also been revised downwards from 1% growth to a contraction of 0.5%, after a £2 billion drop in exports to the US in April—the largest monthly decline since 1997.
Seamus Nevin, chief economist at Make UK, said manufacturers are encountering significant uncertainties in one of their major markets, alongside a skills crisis and skyrocketing energy costs. He emphasised the necessity for the upcoming industrial strategy to implement bold measures to reduce energy costs and ensure access to the skilled workforce needed for a competitive environment. Without urgent action, the UK faces the risk of accelerating de-industrialisation.
The US, previously a reliable and expanding export destination, now ranks behind the Asia-Pacific and Middle East regions in terms of projected trade engagement. The European Union remains the top trading partner for UK manufacturers, but changing dynamics indicate a broader strategic shift for many companies.
Concerns are not limited to British manufacturers. Make UK referenced a related survey by the US National Association of Manufacturers, which revealed that American manufacturing confidence is at its lowest since the Covid-19 pandemic, with trade policy uncertainty being the primary concern.
These insights increase pressure on the Labour government, in office for nearly a year, to deliver on its much-anticipated industrial strategy. The business community is calling for decisive measures to tackle rising energy costs and labour shortages that are hindering growth and investment in a vital sector for the UK’s economic future.
While the US remains a major global economy, signals from the UK’s manufacturing sector are clear: faced with trade wars, tariff barriers, and growing uncertainty, confidence is dwindling, prompting exporters to seek alternative markets.
[Read more](https://bmmagazine.co.uk/news/british-manufacturers-turn-their-backs-on-us-as-export-market-amid-trump-era-trade-turmoil/)
