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British factories cut US exports as Trump’s tariff uncertainty grows

British manufacturers are curbing exports to the United States as uncertainty caused by President Donald Trump’s changing tariff policies disrupts trade and supply chains, according to a new industry study.

A joint study by Make UK and DHL Express found that 20 percent of British factories have already stopped or reduced their exports to the US due to tariff uncertainty. Another 16 percent said they plan to reduce their dependence on the American market, meaning more than a third of manufacturers now view U.S. tariffs as negative for their business.

The report also found that many British factories accelerated their deliveries to the US in early 2025 to counter a possible rise in import tariffs, highlighting the stop-start nature of trade policy over the past year.

Trump has imposed a flat 10 percent tariff on British imports, one of the lowest rates ever imposed in any country. However, Britain was among a group of nations that faced tariffs of up to 25 percent if they defied Trump’s stance on Greenland, a move he later rejected after talks with NATO allies at the World Economic Forum in January.

Stephen Phipson, chief executive of Make UK, said the constant changes in trade policy were forcing manufacturers to rethink long-standing relationships.

“Tariffs and trade conflicts in global markets are creating uncertainty and disrupting long-standing customer and supply chains,” he said. “Many companies are responding by diversifying their exports, adjusting supply chains or scaling back operations to manage rising costs and delays.”

John Cornish, chief executive of DHL Express UK, said manufacturers would adapt rather than abandon international trade entirely.

“Research shows that rather than withdrawing from global trade, British manufacturers are recalibrating,” he said. “After years of disruption, companies are taking a more deliberate and strategic approach to where and how they export, balancing risks while pursuing growth abroad.”

Despite the decline, the US remains an important market for British industry. The study found that 60 percent of manufacturers continue to trade with America, underscoring America’s importance as an export destination.

However, uncertainty is accelerating the shift toward sourcing closer to home. So-called “friendshoring” and “nearshoring” are gaining momentum: 63 percent of manufacturers say they expect to buy more UK-made inputs in the next five years, up from 49 percent in 2020.

The findings suggest that while US trade remains vital, tariff volatility is changing how and where UK manufacturers sell and source, with long-term implications for export strategy and domestic supply chains.


Jamie Young

Jamie is a Senior Reporter at Daily Sparkz and brings over a decade of experience in UK SME business reporting. Jamie has a degree in business administration and regularly attends industry conferences and workshops. When Jamie isn’t covering the latest business developments, he is passionate about mentoring aspiring journalists and entrepreneurs to inspire the next generation of business leaders.

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