UK businesses push into new markets despite global challenges

UK businesses push into new markets despite global challenges

UK businesses are pressing ahead with plans to expand overseas despite rising costs and the challenges of navigating tariffs, regulation and global supply chains, according to new research from Lloyds.

Almost half, (45%), of businesses already trading internationally plan to enter new markets over the next three years, while just 1% expect to reduce their international activity.

The findings suggest firms are looking overseas for growth while carefully considering tariffs and foreign-exchange risk. Scotland has the strongest appetite to enter new markets, at 65%, followed by the East Midlands at 51% and London at 48%.

Trade activity already growing

Of the firms that trade internationally, 47% say their activity has increased over the past 12 months, compared to 12% reporting a decline. North West businesses show the strongest growth at 54%, closely followed by the South East (53%) and the East Midlands (52%).

Almost two thirds of UK businesses (63%) now trade internationally, either exporting or importing goods and services. That figure rises to 73% in London, 70% in the North West and 68% in the West Midlands. Manufacturing is the most internationally engaged sector, with 82% of firms trading across borders.

Trading routes and navigating constraints

When it comes to trading with new markets, 45% plan to trade more with Europe, followed by US and Canada (26%), MENA (19%), Asia-Pacific (11%) and Sub-Saharan Africa (7%) and Latin America (5%).

Just 5% of internationally trading businesses say they face no significant barriers to increasing their activity. When asked which barriers most prevent them from trading more, firms pointed to a mix of external conditions and skills and training.

15/11/2026