For the first time since 1988, when manufacturers’ organisation Make UK began such a poll, the United States is not “the second most favoured destination for export growth… behind the EU”, a statement said.
The world’s biggest economy “has slipped to fourth place as a growth market for UK manufacturers, with preference now shown to Asia/Oceania and the Middle East as companies respond to tariffs and increased uncertainty”, it added.The latest quarterly survey of 324 companies was carried out between April 30 and May 22, together with financial advisory group BDO.
April saw Trump implement baseline 10% tariffs on countries around the world.
The auto sector was hit by 25 percent levies, however, while the steel and aluminium sectors had already been hit by Trump tariffs.Monday’s survey revealed also that 60 percent of UK manufacturers expect their export volumes to the United States to be hit by the levies.”Furthermore, almost a third of companies are assessing changes to their supply chains in terms of where they source from, while just four percent say they will consider setting up manufacturing facilities in the US.”
Official data last week showed Britain’s economy shrank more than expected in April — in part owing to a record drop in exports to the United States.
A recent trade agreement struck between the UK and US failed to result in the tariffs being removed.
