Impact of trump tariffs leads to fastest decline in uk factory export orders in five years

British factories experienced their sharpest decline in export orders for five years last month, as Donald Trump’s international tariff policies disrupted global trade flows. UK manufacturers reported a significant downturn in both output and new orders during April, attributed to mounting economic and trade uncertainties. Many factories were left with no choice but to reduce their workforce, marking the sixth consecutive month of job cuts in the sector.

The global climate for trade was described as “challenging” by S&P Global, who surveyed UK manufacturers about the current conditions. Their findings revealed that weak client confidence, uncertainty over potential US tariffs, and subdued global markets had all significantly weighed on export demand. The manufacturing purchasing managers’ index (PMI) crept up marginally to 45.4 in April, slightly higher than March’s 44.9 but still far below the 50-point benchmark that indicates industry growth.

Economic analysts now anticipate that the Bank of England (BoE) will take action to support the struggling sector. A cut in interest rates appears highly likely, with a reduction of at least 0.25 basis points anticipated next week. Certain BoE officials are reportedly pushing for larger cuts to help stabilise the economic impact on businesses. Anticipating the move, several mortgage lenders have already lowered their rates.

Trump’s tariff regime has exerted notable pressure, with new duties on steel, aluminium, and vehicles disrupting supply chains and inflating production costs. While a blanket 10% tariff has replaced earlier country-specific measures, the pending threat of additional US border taxes has deepened global trade volatility. Senior executives in the automotive, chemicals, and energy sectors have warned UK MPs to prepare for widespread redundancies unless a trade agreement with the US is swiftly negotiated.

Although the Office for National Statistics indicated a 2.2% growth in manufacturing output during the first quarter of the year, this may largely reflect stockpiling and last-minute production intended to avoid the anticipated tariffs. A surge in transport equipment and pharmaceutical exports during this period points to short-term gains amidst ongoing uncertainty.

Despite isolated signs of resilience, business confidence remains critically low, according to S&P Global’s report. Simultaneously, a sharp drop in consumer confidence last month, as identified by YouGov, suggests that households are beginning to limit discretionary spending. With Trump-induced trade tensions showing little sign of abating, the outlook for British industry appears increasingly precarious over the coming months.