British manufacturers are pulling back from the United States as a preferred export destination, amid rising trade uncertainty and the continuing impact of tariffs introduced during Donald Trump’s presidency. For the first time, the US has dropped out of the top three target markets for UK exporters, according to the latest Make UK survey.
The quarterly report by the manufacturers’ lobby group — based on responses from its 20,000 corporate members and compiled in partnership with accountancy firm BDO — paints a stark picture of eroding transatlantic confidence. The findings reveal that just 4% of British manufacturers plan to expand operations or invest in the US, while 60% expect Trump-era protectionist tariffs to hurt their business.
“The shift is unprecedented,” said Seamus Nevin, chief economist at Make UK. “Manufacturers are facing a gathering storm of huge uncertainty in one of their major markets, a skills crisis, and eye-watering energy costs. It’s absolutely essential that the government’s long-awaited industrial strategy addresses these issues head-on.”
The retreat from the US comes amid a broader slowdown in the UK’s industrial outlook. Make UK now forecasts the sector will shrink by 0.2% in 2025, following flat growth in 2024. The outlook for 2026 has also been downgraded from 1% growth to a 0.5% contraction. One of the clearest warning signs came in April, when exports to the US fell by £2 billion — the sharpest monthly drop on record.
Rising energy prices remain a major concern for manufacturers, with many companies warning that cost pressures are threatening their long-term viability. Nevin said the combination of spiralling input costs and uncertainty around international trade risk pushing the UK “further down the road toward de-industrialisation.”
The US has now slipped behind Asia-Pacific and the Middle East in terms of future market priorities for UK firms, while the European Union remains the UK’s leading export bloc.
Make UK also pointed to troubling signals from across the Atlantic. A recent survey by the National Association of Manufacturers in the US revealed that American manufacturers are experiencing their lowest levels of confidence since the COVID-19 pandemic, citing trade policy instability as their top concern.
The findings come as pressure builds on the Labour government, now nearly a year into office, to deliver a comprehensive industrial strategy. Business leaders are calling for urgent reforms to reduce energy costs and address chronic labour shortages.
With global trade patterns shifting and geopolitical tensions on the rise, UK manufacturers appear to be recalibrating their export strategies. Once a key market, the US is now seen as too unpredictable — and exporters are increasingly looking elsewhere for growth.
