UK exporters face escalating costs and delays amid US tariffs and Brexit frictions

New government data reveal mounting pressures on British exporters as US tariffs and Brexit-related disruptions combine to increase costs, slow processes, and reduce sales during a key trading period.

New government data and industry analysis point to mounting strain on British exporters as the effects of the UK’s departure from the EU combine with fresh US trade barriers to raise costs, lengthen processes and dent sales during a critical trading season.

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ing to the Office for National Statistics Business Insights survey conducted in late January, nearly a third of retailers and a quarter of manufacturers reported that costs, which rose at the end of the EU transition period, have continued to climb. The survey , based on responses from around 10,900 UK firms , also found that a small but notable share of exporters who had previously seen shipping costs to the EU stabilise are now facing renewed increases.

Parcelhero, the international delivery specialist, highlighted the ONS findings and pointed to broader global pressures. “That’s just the tip of the iceberg when it comes to ongoing export costs and delays,” said David Jinks M.I.L.T., Head of Consumer Research at Parcelhero. He warned that rising expenses have not been confined to Europe. “Costs for shipping to the USA and other international destinations also rose year-on-year. 40.5% of retailers and 36.1% of manufacturers reported their global exports cost them more in December than in the same month of 2024. Trump’s tariffs, introduced last April, played a role in this overall increase,” he said.

The disruption has translated into weaker volumes over the festive peak. Parcelhero noted that 40.6% of retailers and 26.8% of manufacturers reported lower exports in December 2025 versus December 2024, and that nearly 10% of retailers and 7% of manufacturers who had been exporting over the previous 12 months did not export at all during the October–December 2025 “golden quarter.” The ONS survey also found that more than a quarter of firms said the time they spend on exporting had risen year-on-year, a signal that new paperwork and compliance burdens are adding to operating costs.

Industry organisations and economic forecasters warn the US measures could exacerbate that squeeze. A British Chambers of Commerce survey found 62% of UK businesses exposed to US trade expect adverse effects from the tariffs, with almost a third planning to raise their own prices in response. KPMG UK’s economic outlook projected that tariffs on UK exports could reduce GDP growth to about 0.8% in both 2025 and 2026, estimating an effective tariff rate near 12% for exports to the United States once sectoral impacts are weighed.

The tariffs’ sectoral reach is a particular worry. Trade commentary and advisory analyses point to heightened vulnerability in autos, metals and certain agricultural and food products. BTG Advisory highlighted the exposure of the UK’s car sector, noting multi‑billion‑pound exports to the US prior to the measures, while Digital News modelled scenarios in which steep levies on vehicles and some foodstuffs would sharply reduce demand. The Grocer reported a sharp rise in UK food and drink shipments to the US in the first quarter of 2025 but flagged that the April tariff changes have already complicated trading conditions for that sector.

UK Export Finance has described the US policy environment as volatile. According to The Guardian, Tim Reid, UKEF’s chief executive, told officials and industry that the frequent shifts in US trade policy make it difficult to quantify how many UK firms are at risk, underscoring the challenges exporters face in planning and securing finance.

Despite the pressure, the ONS snapshot shows a mixed picture at company level. Some exporters told the survey their costs had stabilised after initial post‑transition increases, and a minority reported higher exports in December 2025 compared with a year earlier. Parcelhero acknowledged that the United States remains its largest overseas market and profitable for businesses that can adapt to the new tariffs and compliance regime.

Taken together, the official survey and industry studies illustrate a trade landscape where Brexit‑related frictions have become enduring and where new US tariffs are compounding price and administrative burdens. Business groups and advisers are calling for negotiated solutions and clearer, more predictable rules from trading partners, while firms are weighing pricing, market diversification and operational changes to manage the heightened uncertainty.

Source: Noah Wire Services