UK manufacturers recalibrate trade strategies

UK manufacturers are adjusting export flows, market exposure and sourcing strategies as tariffs, trade friction and border complexity increase operational risk for international supply chains, according to new research from Make UK and DHL Express.

According to the survey, the USA remains a major export lane for UK manufacturers, with six in ten currently trading with the market. However, tariff-related disruption is reshaping how those flows are managed. One in four manufacturers reported balance sheet impacts linked to additional tariff costs, while nearly a quarter said they accelerated exports to the USA in early 2025 to move goods ahead of anticipated tariff increases.

At the same time, manufacturers are actively reducing concentration risk. Almost one in four said they have shifted export volumes towards non-US markets, while one in five have already reduced or ceased exports to the USA. A further 16% plan to do so, although a quarter of exporters said they have made no changes, underlining the uneven impact of tariffs across sectors and supply chains.

Half of respondents cited customs delays as a significant operational challenge, pointing to increased documentation requirements, inconsistent processes and limited clarity at borders.

The research also points to changes in sourcing patterns that may impact domestic and regional freight demand. It suggests that 63% of manufacturers will source more of their materials domestically over the next five years, up from 49% since 2020.

Source: logisticsmanager.com