British Manufacturers Abandon US Export Market Amid Trump Trade Wars

British manufacturers are abandoning the United States as an export market, marking a significant shift in global trade relations. The US has dropped out of the top three global regions for UK manufacturing business expectations, a first in the history of Make UK’s member survey.

The industrial employers’ lobby group’s research reveals a stark reality: 60 per cent of manufacturers anticipate negative impacts from Trump’s tariffs on their operations. A mere 4 per cent of surveyed companies plan to invest or establish facilities in the US market.

Make UK has dramatically revised its growth forecasts for the sector. The organisation now predicts a 0.2 per cent contraction in UK manufacturing for 2025, following a stagnant 2024. The outlook for 2026 has been adjusted from a positive 1 per cent growth to a decline of 0.5 per cent.

Recent official data compounds these concerns, showing UK exports to the US plummeted by £2 billion in April – the most substantial monthly decrease since records began in 1997. The European Union maintains its position as the primary trading bloc for UK manufacturers, while Asia-Pacific and the Middle East have now surpassed the US in importance.

Seamus Nevin, chief economist at Make UK, emphasises the severity of the situation: “Manufacturers face a perfect storm of market uncertainty, a skills crisis, and astronomical energy costs. The Labour government’s industrial strategy must address these challenges decisively to prevent accelerated de-industrialisation.”

The impact extends beyond British shores, with the US National Association of Manufacturers reporting manufacturer optimism at its lowest point since the pandemic, primarily due to trade uncertainties. This global perspective underscores the widespread implications of current trade tensions.