UK Exporters Floundering As Headwinds Build

16th July 2026

New?research by the British Chambers of Commerce (BCC) Insights Unit, involving?over 2,400? exporters,?shows overseas exports have fallen dramatically in the second quarter.?

• The?proportion?of businesses reporting increased exports orders fell to 16% in Q2 2026, down from 25% in Q1.  ?? 
• The balance of firms reporting increased orders stands at -10%, with 26% of businesses reporting a decrease. 
• In the past 20 years, export orders have only been worse during the pandemic and financial crash of 2008/9. 
• Services?exporters?have been hit hardest with just 14% reporting increased orders, against 21% for manufacturers.? 

New?research by the British Chambers of Commerce (BCC) Insights Unit, involving?over 2,400? exporters,?shows overseas exports have fallen dramatically in the second quarter.? 

The?survey, carried out between Monday 11 May and Monday 9 June,?found that just 16% of exporters reported an increase in export?orders, while?26% reported a fall, and?58% reported no change.?? 

This was a significant drop on Q1 of 2026, when 25% reported increased?orders, 23% a drop and 52% no change.? 

The size of a firm also played a role with just 11% of micro-exporters, with fewer than 10 employees, reporting increased?export?orders in Q2?(18% in Q1),?24% reported a fall, and 65% reported no change.?? 

In contrast,?26% of large exporters, with more than 250 staff, saw a boost in?overseas orders (38% in Q1),?17% reported a decrease, and?57% said?they’d?seen no change. 

The picture is?substantially different?to the performance before Brexit, Covid, the war in Ukraine, US?tariffs?and other geopolitical disruption. In Q2 2018,?31% of all firms saw?increased export orders?and 14% a decrease.?

(Q: “Over the past 3 months, export sales have...” (n=2,465) 

What Businesses Say 

[President] Trump's tariffs and war on Iran have been creating havoc for exports over the past 18 months. 

Micro hospitality firm in East Midlands  

We export 70% of our products, [President] Trump has had a massive effect on our world trade with the tariffs and the uncertainty this introduced. The Iran war is the icing on the cake. 

Micro construction firm in London  

We have seen a downturn in trade, and costs increase. Unless the summer trade improves, we will have to make some difficult decisions about staffing.  

Large construction firm in London  

The uncertainty caused by the USA/Iran conflict and the Strait of Hormuz is driving costs up across the economy. This may cause some large infrastructure and construction projects to be delayed due to rising material costs. 

Micro manufacturing firm in East Midlands  

Trouble with customs delaying, withholding and charging each shipment has reached breaking point. Since Brexit we have struggled with getting things in and out of the country.  

Micro services firm in Northamptonshire 

William Bain, Head of Trade Policy at the BCC, said:???? 

“Exporters of all sectors and sizes have taken a substantial hit to their overseas orders as the impact of Brexit, tariffs, the Iran war and cost pressures have combined. 

“No business sector is immune. But it’s a growing concern that services firms, which have been the backbone of?our export growth since Brexit, are facing a real fight to boost overseas interest. 

“If the new Prime Minister is serious about delivering growth, then increasing the UK’s exports must be central to that drive. 

“The current administration has been successful in landing a string of trade deals, but the pipeline is starting to empty. Chamber businesses want to see a new set of free trade agreements which focus on Mercosur, the Philippines, Indonesia and Thailand. 

“The government must also boost export support and shift more?trade processes online to simplify the bureaucracy.? 

“Making quick and concrete progress on the EU reset should also be a priority. That means securing?deals?on food and drink exports, agreeing a youth experience programme, reintegrating our electricitymarkets?and linking our schemes on greenhouse gas emissions.”?