UK manufacturers recalibrate trade strategies as tariffs bite

Changes in global trade policies and the introduction of sweeping tariffs are forcing UK manufacturers to reassess their approach to international trade, as higher costs, uncertainty and increased border complexity reshape global markets, according to new research from Make UK and DHL Express.

Make UK/ DHL Express International Trade Trends Survey

2 February 2026

1 in 5 UK manufacturers have reduced or stopped exports to the US altogether
Almost 1 in 4 accelerated their trade into the US to beat the tariffs
23% have shifted export focus to non-US markets
8 in 10 UK manufacturers are still confident in the UK’s overall trade prospects
85% of manufacturers emphasise the ‘Britishness’ of their product or company on the global stage

Findings from International Trade Trends 2026: UK Manufacturers in Global Markets, reveal that growing trade barriers are prompting firms to diversify markets, adjust supply chains and rethink where future growth lies.The US remains a key export destination for British manufacturers, with six in ten currently trading with the US. However, the direct and potential impact of tariffs is already being felt.One in four manufacturers report balance sheet losses linked to added costs arising from US tariffs, while nearly a quarter say they accelerated exports to the US in the early months of 2025 to try to beat anticipated tariff increases.At the same time, manufacturers are increasingly hedging their exposure. Almost one in four say they have shifted their focus towards non-US markets, while one in five have already stopped or reduced exports to the US altogether.A further 16% say they have plans to do so. In contrast, a quarter of exporters report carrying on with their US trade plans without adjustment, highlighting the varied impact across the sector.These findings reflect a broader shift in sentiment. While the US remained the second-most attractive growth market at the time of the survey, more recent sentiment points to manufacturers placing greater emphasis on opportunities in Asia and Oceania.¹ The US nevertheless continues to be an important market for UK manufacturers.Read the full reportBeyond the US, the research highlights wider structural barriers to international trade. Eight in ten companies have been impacted by tariffs of some form. While tariffs and trade rules, including rules of origin, are cited by 58% of manufacturers as a major obstacle to exporting. Half also point to customs delays as a significant challenge, with businesses facing additional paperwork, inconsistent processes and a lack of clear guidance.Despite these pressures, manufacturers remain cautiously optimistic. Almost eight in ten say they are confident in the UK’s overall trade prospects, signalling continued ambition to compete globally even in a more fragmented and uncertain trading environment.While concern about the level of global competition is near universal among manufacturers (87%), they also believe Britain has a strong manufacturing reputation globally, with 85% of respondents saying they emphasise the ‘Britishness’ of their product or company.

Stephen Phipson CBE, CEO, 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, DHL Express UK, said:

“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 research also shows that 63% of manufacturers will source more of their materials domestically over the next five years, up from 49% in the years since 2020, as they look to strengthen resilience, reduce risk and manage costs alongside international trade.However, manufacturers are clear that more support is needed to turn confidence into growth. More than half say they want greater export support from government, while 38% would value access to a logistics partner service and 36% identify customs support as a priority.The findings underline a sector that is adapting rather than retreating. Manufacturers are diversifying markets, adjusting strategies and responding pragmatically to a changing global trade landscape. But without action to reduce friction and improve practical support, the cumulative impact of tariffs, customs complexity and uncertainty risks holding back future growth.To ensure the UK’s trade approach reflects today’s challenges - including tariffs and other barriers - Make UK is calling for a renewed focus on helping businesses navigate global markets, ensuring ambition is matched by delivery so UK manufacturers remain competitive on the world stage.¹ Manufacturing Outlook 2025 Q4 | Make UKThe survey of 119 UK manufacturers was carried out between 8 – 28 October 2025.

About Make UK

Make UK, The Manufacturers’ Organisation, is the representative voice of UK manufacturing. Collectively we represent 20,000 companies of all sizes, from start-ups to multinationals, across engineering, manufacturing, technology and the wider industrial sector. Everything we do – from providing essential business support and training to championing manufacturing industry in the UK and the EU – is designed to help British manufacturers compete, innovate and grow.From HR and employment law, health and safety to environmental and productivity improvement, our advice, expertise and influence enables businesses to remain safe, compliant and future-focused.

About DHL Express

DHL – The logistics company for the worldDHL is the leading global brand in the logistics industry. Our DHL divisions offer an unrivalled portfolio of logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfillment solutions, international express, road, air and ocean transport to industrial supply chain management. With approximately 400,000 employees in more than 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling global sustainable trade flows. With specialized solutions for growth markets and industries including technology, life sciences and healthcare, engineering, manufacturing & energy, auto-mobility and retail, DHL is decisively positioned as “The logistics company for the world”.DHL is part of DHL Group. The Group generated revenues of approximately 84.2 billion euros in 2024. With sustainable business practices and a commitment to society and the environment, the Group makes a positive contribution to the world. DHL Group aims to achieve net-zero emissions logistics by 2050.

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