UK Exporters Pivot Away from America Towards Europe and Asia
British exporters have begun shifting their focus away from the United States, as ongoing uncertainty surrounding Donald Trump's tariffs and trade policies persists, according to the latest national trade study. The findings come ahead of the Spring Statement, with a Northern business leader urging Chancellor Rachel Reeves to foster significant and ambitious growth across UK regions, including the North and OxCam corridors, through enhanced global trade initiatives.
Trade Barometer Reveals Market Diversification Trends
The UK Trade Barometer, produced by Manchester Airports Group and the Growing Together Alliance, indicates that manufacturers, in particular, have redirected their efforts from the US to other international markets in the last quarter of 2025. This trend extends across all sectors, with only 24% of businesses reporting increased US sales in Q4, down from 29% at the start of the year. Additionally, just 14% entered the US market for the first time in Q4, compared to 20% in Q1.
Nine markets have gained popularity over the past year. For instance, 10% of firms plan to boost sales to Australia, up from 6% in Q1, while Spain and New Zealand also saw growth. Among manufacturers, 46% increased exports overall, but only 16% raised sales to America in Q4, a decline from 25% in Q1. In contrast, sales to China doubled to 12%, and Japan saw an increase from 4% to 8%.
Sector-Specific Insights and Regional Disparities
The construction sector led in export increases, with 92% of firms reporting higher overseas sales in Q4, averaging 79% across all quarters. However, US sales growth in this sector dropped to 18% from 43% in Q1, with Japan emerging as a key growth market. Financial services experienced its strongest quarter, with 59% reporting increased overseas sales, though US sales remained steady at 25%.
Regional data shows a widening gap between London and other areas. In Q4, 64% of London exporters grew overseas sales, compared to 50% in the North, 47% in the Midlands, and 44% in the East of England. This disparity has increased since Q1, when 76% of London firms and 69% in the North reported growth. Looking ahead, London firms are more optimistic, with 44% expecting export growth and 33% planning to enter new markets, while figures are lower in the North, Midlands, and East of England.
Future Outlook and Calls for Government Action
Despite current shifts, all regions anticipate a rebound in US sales in early 2026, with the Midlands being the most optimistic at 49%. The North, however, saw a slight dip in forecasts, though still above Q1 2025 levels. The barometer, based on a YouGov survey of 2,000 businesses quarterly, highlights the impact of global events on trade patterns.
Ken O'Toole, CEO of Manchester Airports Group, emphasized the importance of diversification and resilience among UK exporters. He called for government collaboration to boost international trade, particularly through infrastructure investments that enhance connectivity. Henri Murison, chair of the Growing Together Alliance, noted the recalibration in trade patterns, with a pivot to Asia and Europe, and urged the Chancellor to support regional growth in the upcoming Spring Statement.
