New data from the Office for National Statistics (ONS) reveals a sharp divide in the North of England’s trade performance as 2026 begins. While goods exports to the EU and emerging markets grew steadily in January, trade with the United States has bucked the trend, falling by double digits amid rising "tariff weariness".

For the manufacturing hubs of Cumbria and Lancashire, where the automotive and machinery sectors are vital to the local economy, the figures signal a challenging quarter ahead. UK goods export values to the US plummeted by 11.3% in January, driven largely by a decline in shipments of cars, transport goods, and machinery.

Regional Impact and Trade Performance

Despite the transatlantic slump, the broader picture for Northern exporters remains resilient. Total UK goods exports rose by 6.8% in volume terms. Key sectors performing well include:

Chemicals and Pharmaceuticals: A cornerstone of the North East and Teesside economy.

Power Generators and Fuel: Essential components of the Humber’s energy estuary.

Office Machinery: Supporting growth in the EU market, which saw a 7.1% increase in volume.

However, services exports—a growing sector for cities like Leeds and Manchester—showed signs of stagnation, increasing by just 0.2%. Analysts attribute this to heightened global competition and geopolitical instability.

Industry Perspective

William Bain, Head of Trade Policy at the British Chambers of Commerce (BCC), noted that while January started with "solid growth" in most regions, the US situation remains a significant outlier.

“The effects of tariff weariness clearly show through this data with the hold off in sales with the US. Geopolitical and supply chain uncertainty from the Middle East could weigh heavily on global trade data from Q2 onwards.”

Bain urged ministers to lower trade barriers and highlighted the importance of the upcoming WTO Ministerial Conference in Cameroon. He stressed the need for a permanent ban on tariffs for digital services, which is critical for the North’s expanding tech and creative industries.

Support for Cumbrian Exporters

The Cumbria Chamber of Commerce has responded to the volatility by expanding its international trade provisions. To help local small and medium-sized enterprises (SMEs) navigate the shifting landscape, the Chamber is launching a new trade accelerator and a series of "high-impact" trade missions for 2026.

These initiatives aim to diversify export destinations, reducing reliance on any single market. Local firms can currently access the Chamber’s Export Documentation Service and specialised consultancy to manage the increasing complexity of global paperwork and supply chain logistics.