UK manufacturers are adapting to a far more fragmented global trading environment, according to new research that suggests tariffs and shifting trade rules are reshaping export decisions across the sector. Rather than pulling back from international markets, firms are reassessing risk, rebalancing their exposure, and looking beyond traditional destinations for future growth.

The research, International Trade Trends 2026: UK Manufacturers in Global Markets, produced by Make UK and DHL Express, shows that trade barriers are now a near-universal concern. Eight in ten manufacturers report being affected by tariffs, while 58 per cent say trade rules present a major obstacle to exporting. Half of respondents also point to customs delays, administrative burdens and inconsistent guidance as significant challenges when trading internationally.

Despite these pressures, confidence in the UK’s long-term trade prospects remains relatively high. Almost eight in ten manufacturers say they are optimistic overall. However, concern about global competition is widespread, with 87 per cent citing it as a major issue. Even so, UK firms continue to trade on national reputation, with 85 per cent saying they actively promote the “Britishness” of their products or business when selling overseas.

The United States remains a key export destination, with six in ten UK manufacturers currently trading there. Yet the impact of tariffs is already being felt. One in four manufacturers report balance sheet losses linked to additional costs arising from US tariffs. Anticipating further increases, nearly a quarter of firms say they brought forward exports to the US during the early months of 2025.

At the same time, many manufacturers are actively reducing their exposure to the US market. Almost a quarter say they are pivoting towards non-US destinations, while one in five have already reduced or stopped exporting to the US altogether. A quarter of exporters, however, report that they have continued with their US trade plans without making any changes. Opportunities surely remain for UK-US trade but the optics and stability is now, the for the first time in decades, being questioned.

While the US ranked as the second-most attractive growth market at the time the survey was conducted, more recent sentiment suggests manufacturers are placing greater emphasis on opportunities in Asia and Oceania.

Commenting on the findings, John Cornish, CEO of DHL Express UK, said: “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 findings underline Make UK’s call for renewed support to help manufacturers navigate today’s increasingly complex global trading system, as businesses take a more deliberate and strategic approach to international growth.

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