UK retailers pivot to new markets as 76% exporters dodge US tariff risks

Yahoo

a day ago

The study, titled 'Rethinking Reach: How UK Retailers Are Turning Trade Pressure into Global Advantage,' indicates that larger UK retailers are overhauling their international growth strategies in response to protectionist trade policies that disrupt longstanding export patterns.
Additionally, 71% of small UK retailers acknowledge a lack of preparedness for potential trade disruptions with the US.
A looming challenge for UK exporters is the US's planned baseline tariff increase to 10% in 2025, which would raise the average duties on UK non-food exports from 2.3% to 17.2%.
This change is compelling retailers to reassess the feasibility of trading with the US, especially as more than half would find it commercially unviable if tariffs were to exceed 22%.
'UK retailers are undergoing a seismic shift in their export strategies. Retailers can no longer be overly reliant on a single trade corridor and are pivoting to new regions, including the Middle East and Asia-Pacific, where we are seeing exponential growth,' ESW Northern Europe VP Jon Sheard said.
The report states that the Middle East and Asia-Pacific regions are gaining attention as key areas for growth amidst the fluctuating tariff landscape.
It highlights a surge in exports to the Middle East and North Africa by 34% from 2021 to 2024, with the UAE emerging as the fastest-growing UK export market outside the EU.
Additionally, non-EU Western Europe and Asia-Pacific have seen increases of 15% and 6%, respectively, according to the study.
The recent conclusion of trade deal talks between the UK and India represents another opportunity for diversification.
The free trade agreement aims to eliminate tariffs and facilitate market access, potentially unlocking new export opportunities for sectors like fashion and textiles.
Retail Economics CEO Richard Lim said: 'Tariff volatility is reshaping the global retail landscape. Retailers can no longer rely solely on traditional export markets like the US. Instead, they're evaluating new trade routes and pivoting toward high-growth regions to diversify risk and capture new demand. Now is the time for exporters to plan and act. Future success will depend on the ability to adapt, localise, and seize emerging trade opportunities.'
Further findings from the report include:
A strategic imperative among 77% of retailers is global brand-building.
Two-thirds of retailers are prepared to compromise profit margins for export growth.
Key barriers to international expansion are logistics costs, operational complexity, and regulatory uncertainty.
The 'Made in UK' label continues to command a premium perception overseas due to high safety and regulatory standards.
Retailers are increasingly partnering with firms that provide comprehensive market entry services to mitigate challenges associated with entering new markets.
Last month, UK fashion companies such as M&S and Primark praised a government initiative that reduces tariffs on certain garment-producing nations, simplifying trade with the UK.
"UK retailers pivot to new markets as 76% exporters dodge US tariff risks" was originally created and published by Just Style, a GlobalData owned brand.
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