British manufacturers snub US after Trump's trade war
The US has dropped out of the three most desirable markets for British manufacturers for the first time in decades, as Donald Trump's trade war dents confidence in the world's biggest economy.
UK industrial leaders now prefer the EU, Asia and the Middle East as their top three 'growth' markets globally, according to trade body Make UK – relegating the Trump's America to fourth spot.
It is the first time since Make UK began the survey in 1988 that the US has not been the second most attractive market for British manufacturers. The EU has consistently been ranked in first place.
The drop in enthusiasm underlines the extend to which Mr Trump's ongoing trade war has affected how companies now view America as a place to do business.
Despite Mr Trump's push to bring more manufacturing jobs to America, just 4pc of companies polled by Make UK – which represents 20,000 businesses – said they would consider setting up a US manufacturing facility.
Seamus Nevin, Make UK's chief economist, said: 'There has clearly been an immediate and striking shock to the system as far as the special trading relationship with the US is concerned for manufacturers.
'It remains to be seen whether this is a one off drop in sentiment while trading relations enjoy a reset or, whether this is the first sign of a permanent fracture in relations with manufacturers' biggest market.'
The drop in enthusiasm comes despite Sir Keir Starmer having agreed a trade deal with the US last month.
The deal, which is yet to come into force, was hailed by the Government as a 'landmark agreement' that would save thousands of jobs and make it easier for British firms to do business across the Atlantic.
However, Mr Nevin said: 'Even when the trade deal comes into force, UK goods will now be more expensive and moving forward companies may just decide that it's now easier to turn their gaze towards markets elsewhere where there are fewer barriers to doing business.'
UK exports to US fall by £2bn
It comes after official data last week showed that UK exports to the US fell by £2bn in April – their largest decline on record.
Almost two thirds of companies surveyed separately by Make UK said they expected their US export volumes to drop amid the trade war, while a similar amount said they expected a negative hit to their business more broadly.
Almost a third said they were thinking about changing their supply chains and sourcing arrangements.
The US president has pitched his tariff blitz as a painful but necessary step to lower America's reliance on overseas imports and encourage inward investment.
However, sentiment among US manufacturers has soured too, dropping to its lowest level since the pandemic – according to the US's National Association of Manufacturers. This is despite the repeated promises by Mr Trump that his policies will boost the domestic industry.
Make UK also warned of worsening prospects for British manufacturers at home after growth forecasts for the sector were slashed from 1pc to -0.5pc for 2026.
As well as the impact of Mr Trump's trade war, companies are facing increased employment costs after Rachel Reeves increased employers' National Insurance (NI) contributions in her October budget, which took effect in April.
Mr Nevin added: 'While at first glance the headline numbers may not look too bad, manufacturers are facing a gathering storm of huge uncertainty in one of their major markets, a skills crisis and eye watering energy costs which are providing a harsh reality for many.'
In a separate survey released on Monday, a poll showed foreign investors had become significantly less enthusiastic about investing in Britain.
The number of investors planning to invest in Britain dropped from 62pc in March to 52pc in May, a separate survey by auditor Ernst & Young found.
However, 54pc said they expect the UK's attractiveness to increase in the next three years, in a sign that Donald Trump's policies are encouraging investors to look beyond the US for opportunities.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
North Wales Chronicle
21 minutes ago
- North Wales Chronicle
Security review launched after Pro-Palestinian activists break into RAF base
Footage posted online by Palestine Action on Friday morning shows two people inside RAF Brize Norton in Oxfordshire. The clip shows one person riding an electric scooter up to an Airbus Voyager air-to-air refuelling tanker and appearing to spray paint into its jet engine. The incident is being investigated by counter terror police. Defence Secretary John Healey said he was 'disturbed' by the vandalism, while Sir Keir Starmer said it was 'disgraceful'. 'I am really disturbed that this happened and have ordered an investigation and a review of wider security at our bases,' Mr Healey said. 'These aircraft are used by our military personnel to support security and peace around the world. 'This action does nothing to support Gaza or our push for peace and stability in the Middle East.' Downing Street said security is being reviewed across the defence estate and that the Government is working closely with police. The act of vandalism committed at RAF Brize Norton is disgraceful. Our Armed Forces represent the very best of Britain and put their lives on the line for us every day. It is our responsibility to support those who defend us. — Keir Starmer (@Keir_Starmer) June 20, 2025 A No 10 spokesman said: 'A full security review is under way at Brize Norton. 'We are reviewing security across the whole defence estate. 'We treat all breaches of security very seriously, and where there is suspected criminal activity, we will take the necessary steps to investigate and prosecute in line with longstanding principle.' He said the incident had not disrupted any planned aircraft movements or operations. A spokesman for the campaign group said: 'Despite publicly condemning the Israeli Government, Britain continues to send military cargo, fly spy planes over Gaza and refuel US/Israeli fighter jets. 'Britain isn't just complicit, it's an active participant in the Gaza genocide and war crimes across the Middle East. 'By decommissioning two military planes, Palestine Action have directly intervened in the genocide and prevented crimes against the Palestinian people.' RAF Brize Norton serves as the hub for UK strategic air transport and refuelling, including flights to RAF Akrotiri in Cyprus. A Ministry of Defence spokesman said: 'We strongly condemn this vandalism of Royal Air Force assets. We are working closely with the police who are investigating. 'Our Armed Forces represent the very best of Britain. 'They put their lives on the line for us, and their display of duty, dedication and selfless personal sacrifice are an inspiration to us all. 'It is our responsibility to support those who defend us.' Sir Keir said in a post on X: 'The act of vandalism committed at RAF Brize Norton is disgraceful. 'Our Armed Forces represent the very best of Britain and put their lives on the line for us every day. 'It is our responsibility to support those who defend us.' A Counter Terrorism Policing South East statement said: 'Specialist counter terrorism officers are working closely with officers from Thames Valley Police and the Ministry of Defence Police. 'Inquiries are ongoing to establish the exact circumstances.'
The Guardian
23 minutes ago
- The Guardian
US elected officials face wave of violent threats prompting calls for security
A fresh wave of violent threats and incidents targeting elected officials broke out in the US this week, prompting more urgent calls for increased security measures just days after the killing of a Minnesota state legislator and the shooting of another. Amid a series of attacks involving federal and local officials, the latest incidents included death threats against Zohran Mamdani, the New York mayoral candidate, a purported road rage attack on Max Miller, the Ohio congressman, and an alleged kidnapping attempt targeting Paul Young, the mayor of Memphis. The New York police department (NYPD) hate crimes task force is investigating multiple death threats against Mamdani, a Muslim democratic socialist candidate in the final stretch of his campaign and endorsed by national figures such as Bernie Sanders and Alexandria Ocasio-Cortez. The intimidation included threats to blow up his car and Islamophobic voicemails left at Mamdani's office in the city's Queens borough. 'The violent and specific language of what appears to be a repeat caller is alarming and we are taking every precaution,' his campaign said Thursday, blaming the threats on 'dehumanizing, Islamophobic rhetoric designed to stoke division and hate'. Miller contacted the US Capitol Police after being 'run off the road' by a man displaying a Palestinian flag who allegedly yelled 'death to Israel'. Miller, who is Jewish and on the US Holocaust Memorial Council, said the incident occurred while driving in his congressional district and that he knows the identity of his alleged assailant, who also threatened to kill his family. Early on Friday afternoon, a man was arrested in connection with the incident. The suspect was named as Feras Hamdan, 36, of Westlake, near Cleveland, and authorities said he turned himself in to police and is due to appear in court, according to local media reports. Meanwhile, Memphis police arrested 25-year-old Trenton Abston on charges including stalking and attempted kidnapping after he allegedly scaled a wall at Young's residence in Tennessee with what police described as a 'nervous demeanor'. Officers recovered 'a taser, gloves, rope and duct tape' from the suspect's vehicle. The string of incidents came just days after the killing of Melissa Hortman, a Minnesota Democratic state representative, and her husband Mark, with John Hoffman, a state senator, and his wife seriously wounded in a separate attack by the same gunman last Saturday as anti-Trump 'No Kings' protests were getting underway for millions across the country. The suspect, Vance Boelter, 57, was captured after a large manhunt and faces murder charges, amid reports that he is an extremist and was pro-Trump and anti-abortion. The discovery of a hit list containing 'dozens and dozens' of Democratic politicians' names in Boelter's car has sent new shockwaves through the political community. Hillary Scholten, a member of Congress from Michigan, cancelled a public town hall, citing safety concerns. The escalating threats have left congressmembers from both parties demanding additional security funding and enhanced protection measures in recent days, as fears grow that political violence is becoming normalized across American politics. The Capitol Police requested nearly $1bn in funding for next year, while Chuck Schumer, the Senate minority leader, posted that 'the violence and threats against elected officials has drastically increased' and called for more money to protect lawmakers. Capitol Police investigated 9,474 threats to lawmakers and their families last year, an increase of nearly 1,500 compared with 2023, which have escalated over the last five years but peaked in 2021. Only eight convictions were made over the threats in 2024, according to a bipartisan letter from Bryan Steil, a Wisconsin representative, and Joseph Morelle, a New York representative, sent Tuesday to the Department of Justice. Mike Johnson linked the violence to broader political rhetoric. 'What happened to Max [Miller] this morning is yet another outrageous example of unhinged rhetoric inspiring unstable people to threaten and attack elected officials,' the House speaker said. 'We must turn down the temperature in this country.'
Top Gear
36 minutes ago
- Top Gear
Skoda students have turned this Superb Estate into a bike-carrying pickup truck
Plug-in hybrid Superb becomes a ute with a clever bike rack and a sliding rear door to support pro bike racers Skoda loves cycling. Of course, the Czech firm started out with Václav Laurin and Václav Klement making bicycles all the way back in 1895, and in slightly more recent times it has been a main partner of the Tour de France for over two decades. So it's perhaps no surprise this year's concept car produced by the students of the Skoda Academy in Mladá Boleslav is a cyclist's dream support vehicle. Christened the Skoda L&K 130, this is the first Skoda student concept to be based on the Superb Estate, and the kids have turned it into a rad pickup style thing with space for two bikes on the racks in the extendable bed, and another on the roof.
