New data reveals worsening effects of Brexit and US tariffs

THE IMPACT of Brexit and Trump’s tariffs have had a significant and ongoing impact on UK exporters, says the international delivery expert Parcelhero. Shock new results from the Office for National Statistics (ONS) Business Insights survey, carried out in late January, reveal that 32.7% of retailers and 25.6% of manufacturers reported that their costs rose at the end of the EU transition period and are still rising. 

Additionally, 3.3% of retailers and 4.7% of manufacturers who exported within the last 12 months said their costs of shipping to the EU had previously stabilised but are now rising again.

"That’s just the tip of the iceberg when it comes to ongoing export costs and delays," said Parcelhero’s head of consumer research, David Jinks. "It was not only to EU destinations that export costs rose. 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.

"Around 10,900 UK businesses responded to the latest ONS business survey, giving a good snapshot of the pressures facing British exporters in January. Looking at these increasing costs, it’s not surprising that 40.6% of retailers and 26.8% of manufacturers said they exported less in December 2025 than in the same period the previous year. 

"More concerningly, 9.7% of retailers and 6.9% of manufacturers who engaged in exports during the last 12 months said they had not exported at all in the three-month period between October and December 2025. That’s particularly bad news because this period is known in retail as the “golden quarter”, as many businesses make the bulk of their profits during the Christmas/BFCM (Black Friday-Cyber Monday) peak," he continued.

"To top off this lengthy list of alarming export news, the ONS survey also revealed that 28.2% of retailers and 25.5% of manufacturers reported that the time spent by their business on exporting had increased in December 2025 compared to the same month the previous year. That means that the red tape that comes with new tariffs, both to the EU and the USA, has increased.

"The survey also presents an interesting insight into the markets that British exporters are currently focusing on. In the last three months, 27.7% of retailers and 20.4% of manufacturers only exported to the EU, 17.8% of retailers and 16.5% of manufacturers only exported to non-EU markets (predominantly the USA) while 44.1% of retailers and 52.9% of manufacturers exported to both EU and non-EU markets.

"Despite all the bad news in this survey, there were some flickers of light in the gloom, as not every UK exporter has been hit as hard by the new world trade order. 19.9% of retailers and 24.1% of manufacturers exporting to the EU reported that, though their costs increased at the end of the transition period, they have now stabilised. In terms of world trade, although 40.6% of retailers and 26.8% of manufacturers said they had exported less in December 2025 than in 2024, this was partially offset by the 13.6% of retailers and 12.2% of manufacturers who stated they actually exported more this December, year-on-year," Jinks stated.

"Focusing on the USA, the ongoing impact of new tariffs and the repeal of its de minimis rules means UK exporters are inevitably looking at a period of continuing volatility. Nonetheless, the US remains Parcelhero’s biggest individual overseas market and a lucrative one for those exporters prepared to adapt to its challenges."

Live information on US courier services, as well as plenty of advice on shipping to America, can be seen at www.parcelhero.com/en-gb/international-courier-services/usa-parcel-delivery