As the 10th anniversary of Britain’s decision to leave the EU looms, new ONS data shows UK retailers are still being hit by rising Brexit‑related costs. Dovetailing with tougher US trade rules, this is prompting some retailers to rethink international growth strategies.
The latest ONS Business Insights survey reports that 32.7% of retailers and 25.6% of manufacturers have seen EU export costs rise since the Brexit transition period, with increases continuing nearly a decade after the referendum. An additional 3.3% of retailers and 4.7% of manufacturers note that previously stable costs are now increasing again.
Parcelhero’s head of consumer research, David Jinks M.I.L.T described the growing Brexit-related costs and delays as “the tip of the iceberg”. He said: “It was not only to EU destinations that export costs rose. Costs for shipping to the USA and other international destinations also rose year-on-year… Trump’s tariffs, introduced last April, played a role in this overall increase.”
Of the 10,900 businesses surveyed by the ONS, 40.6% of retailers and 26.8% of manufacturers exported less in December compared to the previous year. Nearly 10% of retailers and 7% of manufacturers did not export during the “golden quarter,” typically the most profitable period.
Administrative burdens are increasing, with 28.2% of retailers and 25.5% of manufacturers spending more time on export paperwork year over year.
US market no longer a safe bet
The US, historically the UK’s largest non-EU export market, is no longer a guaranteed path for overseas growth. The removal of the $800 de minimis threshold for low-value imports in August 2025 means UK shipments now face full customs checks, duties, and additional data requirements, increasing costs and causing delays. These changes add to existing US tariffs on most UK goods and higher duties in key sectors.
ParcelHero’s data indicates that exporters are reevaluating their markets: 27.7% of retailers exported only to the EU, 17.8% only to non-EU markets (mainly the US), and 44.1% to both. Some resilience is evident, as 19.9% of retailers and 24.1% of manufacturers report stabilising EU costs, while 13.6% of retailers and 12.2% of manufacturers saw global export growth year over year.
Jinks expects continued volatility in the US market. “Focusing on the USA, the ongoing impact of new tariffs and the repeal of its de minimis rules means UK exporters are inevitably looking at a period of continuing volatility,” he warned.
However, he noted that the US market remains profitable for adaptable exporters, with guidance available at ParcelHero’s US delivery hub.
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