Brexit is our new reality, but we must harness it to expand global trade, not retreat inwards like Trump, says Geoffrey de Mowbray
I often say trade moves like water, always finding new routes in the face of disruption. It’s fair to say the last few months have sent not just ripples but tidal waves through the global trade ecosystem. The latest storm hit last weekend, with the news that Trump is threatening a 100 per cent tariff on Chinese exports to the US. The news has not been well received by China, with warnings of retaliatory tariffs and a looming trade war on the horizon.
Protectionism is economic cowardice – the last resort of politicians when they’ve run out of ideas for growth. Trump might be showing his teeth, but this latest threat is an admission of weakness, not a sign of dominance. It’s a sign that America no longer trusts itself to compete.
The UK risks falling into the same trap. Brexit is our new reality, and with it comes a choice: harness that freedom to compete smarter, or continue shielding ourselves from the opportunities it presents. The idea that we can retreat from global trade and somehow grow stronger at home is built on a logical fallacy. Economies that hide from competition don’t become safer; they become slower, smaller and poorer.
Of course, standing behind our own industries isn’t a weakness: Britain leads in international exports when it comes to manufacturing and engineering, particularly in the aerospace, defence and automotive sectors. These are the industries we should be championing to succeed at home, with the potential to revive our market towns, create jobs and rebuild local supply chains.
But our strength won’t come from alienating other markets – it’ll come from collaboration. I don’t believe in competition for its own sake; I believe in working together to build the things the world needs. Industry, finance, government and enterprise all have a role to play in that. This is the model we should be doubling down on: coordinated, confident and outward-looking. The goal should be to give businesses the backing they need at home, so they can compete confidently abroad, bolstered by national assets like UK Export Finance.
Britain must look further outward
It’s been a tumultuous year for trade – and it’s telling that the only companies still growing are those that have looked beyond Europe and doubled down on global markets, like Africa, Asia, the Middle East and Latin America. China’s ports are now expanding direct routes to emerging markets; Latin American exporters are triangulating through low-tariff partners to keep goods moving; and African nations are deepening ties with Asia to protect themselves against uncertainty in the West. Trade always finds a way.
But British businesses must be part of this shift, not watching it pass us by. New trade corridors – from West Africa to the Gulf States and across Latin America – are increasing demand for British goods and services. These are the kind of partnerships that can revive the British towns that have been left behind.
Real economic courage is building strength at home while competing openly abroad. The US, like the UK, has the talent, financial backing and innovation to lead the next chapter of trade. It should focus on making itself competitive enough that it doesn’t have to hide behind tariffs.
Real strength is self-belief, not self-protection. We can back British industry without shielding it, and we can rebuild our domestic capacity while staying outward-looking. The US should do the same. Protectionism is a retreat – and a retreating economy cannot lead.
Geoffrey de Mowbray is chair of British Exporters Association (BExA) and CEO and founder of Dints International and Via