Britain's exporters have a bigger problem than tariffs
Written by Mark Wilson
3 August 2026
Written by Mark Wilson
The latest figures from the British Chambers of Commerce (BCC) make uncomfortable reading for UK exporters. Just 16% of exporting businesses reported an increase in overseas orders during the second quarter of 2026, while 26% reported a decline, leaving a net balance of -10%. According to the BCC, export orders are now at their weakest level outside the financial crisis and the Covid-19 pandemic over the past two decades.
At first glance, it is tempting to attribute the slowdown to familiar causes. Tariffs, geopolitical tensions, rising costs, supply chain disruption and post-Brexit trading arrangements have all made international trade more challenging. Yet while these factors undoubtedly play a role, they do not tell the whole story.
The more important question for UK businesses is this: if conditions are difficult for everyone, why are some exporters continuing to grow?
Trade agreements are not enough
Over recent years, successive governments have promoted new trade agreements as a route to increasing exports. These agreements undoubtedly make international trade easier by reducing tariffs, simplifying customs arrangements or opening access to new markets. However, trade agreements do not create customers. They do not generate enquiries, build trust with overseas buyers or persuade an organisation to choose one supplier over another. They remove barriers, but they do not create demand.
For many SMEs, there remains a misconception that entering a new market is largely a question of paperwork and regulation. In reality, winning business overseas often requires the same fundamentals as winning business at home: understanding customers, demonstrating value, building relationships and establishing credibility.
International buyers have become more selective
Global uncertainty has changed the way organisations purchase goods and services. Buyers are placing greater emphasis on supplier resilience, financial stability, compliance, cybersecurity, sustainability and long-term reliability. In many sectors, purchasing decisions now involve more scrutiny and more stakeholders than they did just a few years ago.
Price remains important, but increasingly it is only one part of the decision. For UK exporters, this means demonstrating why they are the lowest-risk partner, not simply the lowest-cost option.
Complexity is becoming the new normal
Today's exporters operate in a trading environment that is significantly more complex than it was a decade ago. US tariff policy continues to evolve, shipping routes remain vulnerable to geopolitical disruption, regulatory requirements increasingly differ between markets, currency fluctuations can alter competitiveness overnight, while businesses must also navigate sanctions, export controls and changing compliance requirements. None of these challenges is necessarily insurmountable in isolation.
Taken together, however, they create uncertainty. And uncertainty often leads customers to delay investment decisions, extend procurement processes or favour established suppliers over new entrants.
The businesses succeeding are adapting
Despite the difficult backdrop, many UK businesses continue to grow internationally. The common factor is rarely luck: successful exporters are investing in stronger local partnerships, attending international trade exhibitions, improving their digital presence, tailoring products to individual markets and diversifying beyond traditional export destinations. Many are also recognising that business travel is not simply a cost of exporting, but an investment in winning customers, building trust and developing long-term international relationships.
Many are also using technology more effectively, from AI-assisted market research and lead generation to better customer insight and more efficient supply chain management.
Rather than waiting for market conditions to improve, they are adapting to them.
A challenge for business and government
The BCC's findings should concern policymakers. Export growth remains central to the UK's long-term economic ambitions, yet many businesses clearly face significant headwinds. For government, that means continuing to reduce barriers to trade and helping businesses access international markets more effectively. For businesses themselves, however, the challenge is different.
The latest figures suggest that international demand has not disappeared. Instead, competition for that demand has intensified. Companies that rely solely on favourable trading conditions may continue to struggle, while those that invest in relationships, market knowledge and competitive advantage are more likely to succeed. The global trading environment is unlikely to become simpler any time soon.
The exporters that recognise this, and adapt accordingly, may be the ones best placed to prosper when confidence eventually returns.
Source: British Chambers of Commerce, UK Exporters Floundering As Headwinds Build, published 15 July 2026.
