Welcome to the very first Expert Exporter Monthly News Round-Up.
Each month, we’ll share the major developments shaping global trade, explain what they mean specifically for UK exporters, and include insight from Go Exporting founder and CEO, Mike Wilson, on the state of play for exporting firms.
Let’s dive in.
UK exporters react swiftly to US tariff threats
Research from the British Chambers of Commerce revealed that one in three UK exporters who expected to be affected by proposed US tariff measures at the start of the year had begun taking mitigating action immediately. You can read the full findings here:
https://www.britishchambers.org.uk/news/2026/01/impact-of-us-tariff-threat-revealed/
The proposed 10% tariff threat – linked to wider geopolitical tensions – may have been rolled back on by Trump after collective pushback from EU and UK politicians, but the reaction from UK businesses tells us something important. Exporters are no longer waiting for formal policy announcements before adjusting pricing models, reviewing supply chains or reassessing market exposure. Instead, firms are acting pre-emptively, assuming disruption is more likely than stability.
While this agility demonstrates improved resilience compared to previous trade shocks, it also highlights a deeper concern. Businesses are diverting management time and capital toward defensive planning rather than expansion. Long-term investment decisions, including entering new markets or scaling overseas operations, are becoming harder to commit to in an unpredictable policy environment.
What this means for UK exporters
The lesson here isn’t simply “prepare for tariffs”, it’s that geopolitical volatility is now a structural feature of global trade. UK exporters need embedded contingency planning, flexible pricing strategies, and diversified market portfolios. Firms overly dependent on a single export destination, particularly the US, are now significantly more exposed to policy swings than in previous decades.
China meets 5% growth target, but export reliance deepens
China announced it achieved its 5% GDP growth target last year, despite continued trade tensions and global headwinds. Full coverage from the BBC can be found here:
https://www.bbc.co.uk/news/articles/cgk8zd287myo
However, much of that growth has been driven by exports, at a time when domestic demand has softened. This increasing reliance on external markets could leave China more exposed to trade disruption if protectionist measures expand further in the US or Europe.
At the same time, China has signalled willingness to explore renewed trade and investment agreements with the EU, according to Reuters:
https://www.reuters.com/world/china/china-says-it-is-willing-explore-trade-investment-agreements-with-eu-2025-11-06/
Alongside this, changes to low-value parcel tax rules are tightening compliance requirements for cross-border e-commerce. Many governments, including the US, EU nations and now UK are closing perceived loopholes around small-value shipments, ensuring VAT and duties are correctly collected.
What this means for UK exporters
There are three significant implications here.
First, if China continues to lean on exports to drive growth, UK businesses should expect intensified competition in third-country markets, particularly in price-sensitive sectors such as consumer goods, electronics and light manufacturing.
Second, any movement on EU–China trade negotiations could reshape the competitive landscape within Europe. While the UK is no longer part of the EU, shifts in EU trade policy often indirectly affect UK exporters operating in similar sectors or supply chains.
Third, tightening parcel and VAT rules reinforce a broader global trend: compliance is getting stricter everywhere, and markets becoming more insular. UK SMEs selling directly into international markets via e-commerce must ensure classification, valuation and documentation are watertight. The era of “informal” low-value exports is steadily closing.
This should though make it easier for UK small businesses to compete online in their own marketplaces.
UK defence exports reach record £20bn
In a continued sign of global instability and strategic realignment, UK defence exports hit their highest ever level in 2025, exceeding £20 billion in overseas sales. The government announcement can be read here:
https://www.gov.uk/government/news/2025-sees-highest-british-defence-exports-since-records-began-in-huge-boost-to-workers-and-companies
This growth reflects sustained demand from allied nations, driven by increased defence spending commitments across Europe, the Middle East and parts of Asia. It also signals confidence in British manufacturing capability and technical expertise within highly regulated, high-value sectors.
While defence is a specialist area, its record performance highlights a broader macro trend: in uncertain geopolitical climates, governments prioritise resilience, infrastructure, security and domestic capability.
What this means for UK exporters
For firms directly within defence supply chains, the opportunity is clear. However, the ripple effects extend further into advanced manufacturing, aerospace, engineering services, cyber security and specialist technology providers.
More broadly, this news reinforces that global turbulence does not necessarily suppress export opportunities. Instead, it shifts demand toward sectors aligned with strategic resilience. UK exporters that understand these macro-demand shifts and align their market targeting accordingly can position themselves advantageously.
An expert word…
On the current state of exports and the global marketplace
“In 2026, the global marketplace is more regulated and fragmented, but still full of opportunity for well-prepared exporters. Supply chains are shifting due to geopolitics and new compliance rules, yet demand remains strong.
“The EU has stabilised post-Brexit, though challenges remain, while growth markets in the Gulf, Asia and Africa are increasingly accessible. Careful market selection has never been more important, combined with robust compliance and strong local partnerships.”
On what UK exporters should watch out for in 2026
“Exporters face tighter rules than ever before – GPSR, CBAM, EUDR, VAT reforms – alongside rising costs and geopolitical risk. This requires stronger planning, documentation and internal expertise.
“But these same pressures present opportunity. Companies that invest in analysing potential markets, strengthening compliance, optimising operating models and improving partner performance will be best placed to grow in 2026.”
