More than two-thirds of United Kingdom exporters say that they're actively diversifying their businesses beyond the U.S., as the Trump administration's tariff policies continue to shake up global trade.

“U.K. retailers are undergoing a seismic shift in their export strategies,” said Jon Sheard, VP of Northern Europe at e-commerce service provider ESW. “Retailers can no longer be overly reliant on a single trade corridor and are pivoting to new regions."

According to a survey of 200 U.K. businesses from ESW and research firm Retail Economics, larger British retailers are "radically re-drawing their global growth playbooks" in the face of President Donald Trump's aggressive approach to tariffs. Across the U.K., 15% of businesses in the electronics sector have sought to reduce their exposure to the U.S, as well as 20% of clothing and footwear companies, 15% of home goods businesses, and 14% of beauty and lifestyle brands.

Currently, the U.S. tariff rate against most U.K. exports sits at 10%. However, ESW and Retail Economics estimate that most larger retailers in the U.K. would find trade with the U.S. "commercially unviable" if that number were to approach 24% at some point down the line. To manage the added financial burden in the interim, 27% of consumer electronics companies say that they're passing costs on to customers, in addition to 15% of clothing and footwear companies, 19% of home goods businesses, and 16% of beauty and lifestyle brands. 

As economic uncertainty continues to set in, 77% of British retailers see global brand-building as a strategic imperative moving forward, while two-thirds say that they're willing to sacrifice some profit margin to drive export sales growth. That has them focusing their efforts on three standout markets: the Middle East, Asia-Pacific, and non-EU Western Europe. Between 2021 and 2024, retail exports to the United Arab Emirates grew by nearly 84% — the most of any country — while exports to India grew by 70%, to Norway by 52% and 31% toTurkey. U.K. retail exports to the U.S. grew by roughly 20% over that same period.