Business, Freight News, Logistics


Government unveils trade strategy for turbulent times

[ June 26, 2025   //   ]

The government has published the UK’s first Trade Strategy since the country left the EU. It said it would make the UK the most connected nation in the world and would help deliver economic growth. 

It said it would take a more agile and targeted approach than the previous government’s, focusing on quicker, more practical deals that deliver faster benefits to UK businesses.

At the same time it would strengthen trade defences, expand export finance – especially for smaller firms – and aligs trade policy with national priorities like green growth.

It said a new Ricardo Fund would tackle complex regulatory issues and remove obstacles for UK businesses selling abroad. 

UK Export Finance (UKEF)’s capacity has been expanded by £20 billion to £80 billion, along with a new Small Export Builder to give such firms better access to export protection insurance. It also introduces improvements to help overseas buyers finance repeat orders from trusted UK suppliers in a more streamlined way.   

The Trade Strategy comes amid a backdrop of resurgent protectionism, triggered by President Trump’s ‘Liberation Day’ tariffs. The Government said that unfair trading practices created significant challenges for UK business.

The UK recently signed major trade deals with India, the US and the EU.

Prime Minister, Keir Starmer described the Trade Strategy as: “a promise to British business: helping firms sell more, grow faster, and compete globally. It’s about delivering growth as part of our Plan for Change—and making sure working people feel the benefits.

Business and Trade Secretary Jonathan Reynolds said: “The UK is an open trading nation but we must reconcile this with a new geopolitical reality and work in our own national interest. Our Trade Strategy will sharpen our trade defence so we can ensure British businesses are protected from harm, while also relentlessly pursuing every opportunity to sell to more markets under better terms than before.

“Broad and complex trade deals like we secured with India will bring billions to our economy every year but to deliver the Plan for Change we will strike more agile, targeted deals that exploit the sectors which drive the most growth for our economy.”

Trade Minister Douglas Alexander added: “This new hard-headed, data driven, and agile approach to trade policy is guided by our pragmatic patriotism. In this changed and challenging world, we will promote what we can and protect what we must to advance the UK’s national interest. 

“Through our Trade Strategy, we are supporting our businesses to expand and export with a wider range of trade tools that harness our high-growth industries of the future to deliver this government’s Plan for Change.”

Logistics UK head of trade and devolved policy Nichola Mallon said: “The Trade Strategy sets a positive overall direction of travel for growth, but the logistics sector needs to be intrinsic to the tactical delivery plans if the government’s growth ambitions are going to arrive at the intended destination, on time.

“Increasing exports is one of the fastest ways to boost growth yet border bureaucracy has meant that many UK businesses now choose to focus solely on the domestic market. Modernising customs processes is something we have been advocating for some time and our members will be encouraged that the government is harnessing digitalisation and intending to deliver a single trade window.

“It is essential that further detail is provided and this happens as soon as possible to reduce the considerable data burden and border friction on businesses, particularly SMEs, and that government takes coordinated and concerted action to support UK businesses to start exporting again.”

However, she added that the creation of a new Supply Chains Centre and Economic Security Advisory Service were positive steps. To be effective, both must be developed in partnership with the logistics sector taking into account the importance of the UK’s international gateways for trade which are a core part of the UK’s Critical National Infrastructure.

Mallon added: “We will continue our work with the government to ensure when the Trade Strategy is implemented it has the necessary detail to address the practical aspects that hit trade such as excessive delays and checks, incompatible IT systems and complicated customs processes.”

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