02.02.2026
UK manufacturers are reassessing how and where they trade as higher tariffs, geopolitical pressures and growing border complexity continue to reshape global markets, according to new research from Make UK and DHL Express.
While the United States remains an important export destination, the findings point to a broader shift in sentiment. Rising trade friction and uncertainty in key markets are prompting many businesses to diversify exports, adjust supply chains and reassess future growth plans.
Tariffs and trade friction weigh on exporters
The impact of tariffs is now widespread across UK manufacturing:
- 8 in 10 manufacturers report being affected by tariffs or duties in the last five years
- 58% cite tariffs and trade rules, including rules of origin, as a major barrier to exporting
- 50% point to customs delays and inconsistent processes as a significant challenge
These pressures are increasing costs, disrupting supply chains and adding complexity for businesses trading internationally.
Manufacturers remain ambitious despite uncertainty
Despite these challenges, manufacturers remain outward-looking and ambitious:
- Nearly 8 in 10 manufacturers say they are confident in the UK’s overall trade prospects
- Many are exploring opportunities beyond traditional markets while adapting to a more fragmented global trading environment
The research highlights the importance of greater certainty and more seamless trading relationships with long-term partners to support investment, exports and competitiveness.
A strategic approach to global trade
The findings underline the need for a strategic approach to trade that reduces friction, supports exporters in navigating change, and strengthens the UK’s position in global markets.
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.
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.