The bosses of UK corporations are looking for to safe commerce in markets outdoors the EU amid an financial slowdown within the bloc.
British companies are more and more concentrating on markets corresponding to China, the US and Australia, in accordance with Santander.
In the meantime, Eire and Italy have fallen out of the highest ten export locations for the UK for the primary time since 2022.
European economies have stagnated lately, with Germany’s GDP 0.4pc decrease within the first quarter than the identical interval a yr in the past.
Europe’s largest economic system narrowly prevented a recession at first of this yr, whereas France’s economic system managed simply 0.1pc development within the first quarter of the yr after a contraction of 0.1pc on the finish of 2024.
Chancellor Rachel Reeves steered final month that Europe was “arguably extra necessary” as a buying and selling companion to Britain than the US.
However the USA stays Britain’s second most necessary export vacation spot regardless of the elevated commerce tensions with the world’s largest economic system, the Santander spring commerce barometer confirmed.
The UK grew to become the primary nation to signal a commerce settlement with the US following the so-called “liberation day” tariffs introduced final month.
Some 54pc of UK corporations thought-about the US a high export market, falling simply behind Germany, which slipped from 59pc to 55pc.
Jane Galvin of Santander UK mentioned: “Because the UK faces ongoing home challenges, companies are trying past our borders for development alternatives. There’s a actual urgency for corporations to faucet into worldwide markets, regardless of the tougher and infrequently unpredictable world panorama.
“Whereas Germany and France are nonetheless excessive on the checklist of markets UK companies do enterprise with, there’s a clear downward development in UK-EU buying and selling exercise.
“As these corporations plan their future development, they’re trying in the direction of the likes of China, the US, Canada and Australia – they usually want help discovering the best companions, in addition to steering on new markets.”
The European Union has come underneath hearth this week after US treasury secretary Scott Bessent mentioned an financial cope with the bloc would probably come “a bit slower” than with different buying and selling companions.
Talking at a Saudi-US Funding Discussion board in Riyadh, Mr Bessent mentioned: “My private perception is Europe could have a collective motion drawback; that the Italians need one thing that’s completely different than the French.
“However I’m positive on the finish of the day, we’ll attain a passable conclusion.”