British manufacturers are scaling back exports to the United States as uncertainty caused by former President Donald Trump’s shifting tariff policies disrupt trade and supply chains, according to new industry research.
A joint study by Make UK and DHL Express found that 20% of UK factories have already stopped or reduced exports to the US in response to tariff uncertainty. Additionally, 16% plan to reduce their reliance on the American market, indicating that more than a third of manufacturers view US tariffs as negatively impacting their business.
The report also highlighted that many British factories accelerated shipments to the US in early 2025 to avoid potential import levy increases, underscoring the erratic nature of trade policy over the past year.
Trump imposed a blanket 10% 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% if they opposed Trump’s stance over Greenland, a move he later reversed after discussions with NATO allies at the World Economic Forum in January.
Stephen Phipson, chief executive of Make UK, stated that the constant shifts in trade policy were forcing manufacturers to reconsider 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, noted that 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% 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% of manufacturers expecting to buy more UK-produced inputs over the next five years, up from 49% 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.
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