UK businesses push into new markets despite global challenges

Lloyds
Published on: 13 November 2026
2 min read

47%

of firms increased international trade in the past 12 months

45%

of firms plan to enter new markets

65%

of Scottish firms plan to enter new markets - the highest of any nation or region

  • 45% of firms plan to enter new markets over next three years, while just 1% intend to reduce activity.
  • 47% increased international trade activity in past 12 months, compared with 12% reporting a decline.
  • Tariffs, expansion costs and FX holding back further business growth.
  • Lloyds has launched Export Assist, an AI-powered tool available to all UK exporters.


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 one per cent 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.

The research also points to a divide between businesses that trade internationally and those focused solely on the domestic market. In the past 12 months international firms were more confident in both their trading outlook and economic optimism, with an average business confidence reading of 56% compared to 32% for domestic firms.

There are so many brilliant British businesses with the ambition and expertise to succeed overseas. And when they grow internationally, we all feel the benefit here at home, through more investment, more opportunities and more jobs.

“It’s great to see businesses that already trade internationally looking to go further and enter new markets. Whether it’s a manufacturer in Coventry finding suppliers in Asia, a software company in Manchester serving new customers in the US, or a Scottish drink producer reaching consumers around the world, international trade brings growth right across Britain.

“There’s a real opportunity for more domestic businesses to think about what trading internationally can do for them too. It can help them reach new customers, build stronger supply chains and find new ways to grow. Of course, taking that first step can feel complicated. That’s where the right support really matters. Our Relationship Managers across the UK are there to help businesses navigate the options and access the finance and expertise they need to grow internationally.

Amanda Murphy CEO for Lloyds Business and Commercial Banking

As we mark International Trade Week, it's great to see innovative projects like Export Assist introduced as so many businesses look beyond our borders for growth, creating new opportunities in every postcode. We know there's more to do to back exporters internationally, which is why a range of support is available through UK Export Finance to help businesses compete, grow and succeed across the globe.

Lord Sarwar Minister for Trade


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 five per cent 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.

Table showing barrier percentages

Barrier

Percentage

Barrier

Tariffs and trade agreement uncertainty

Percentage

31%

Barrier

Cost of international expansion

Percentage

29%

Barrier

Currency or foreign exchange risk management

Percentage

25%

Barrier

Lack of internal skills or expertise in international trade

Percentage

23%

Barrier

Regulatory or compliance complexity

Percentage

21%

Barrier

Supply chain complexity or disruption risk

Percentage

21%


Trade finance important to future plans

More than four in five firms (84%) say affordable access to trade finance facilities would be important to their future international trade plans, rising to 90% in both London and the South East. 

Three quarters of businesses (75%) report they have access to trade finance facilities, rising to 89% in London and 80% in the South East. Around a quarter (24%) describe that access as adequate, while 51% say it is available but limited or expensive.

To help UK businesses manage the practical complexities of trading overseas, Lloyds has launched Export Assist, an AI-powered tool designed to automate and remove discrepancies that cost exporters using Letters of Credit an estimated 500,000 days each year through delays and the resubmission of documents. The tool is available to all UK exporters, whether or not they bank with Lloyds. 

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