Only 4pc of companies would consider setting up a production facility in America, survey shows.

The US has dropped out of the three most desirable markets for British manufacturers for the first time in decades, as Donald Trump’s trade war dents confidence in the world’s biggest economy.

UK industrial leaders now prefer the EU, Asia and the Middle East as their top three “growth” markets globally, according to trade body Make UK – relegating the Trump’s America to fourth spot.

It is the first time since Make UK began the survey in 1988 that the US has not been the second most attractive market for British manufacturers. The EU has consistently been ranked in first place.

The drop in enthusiasm underlines the extend to which Mr Trump’s ongoing trade war has affected how companies now view America as a place to do business.

Despite Mr Trump’s push to bring more manufacturing jobs to America, just 4pc of companies polled by Make UK – which represents 20,000 businesses – said they would consider setting up a US manufacturing facility.

Seamus Nevin, Make UK’s chief economist, said: “There has clearly been an immediate and striking shock to the system as far as the special trading relationship with the US is concerned for manufacturers.

“It remains to be seen whether this is a one off drop in sentiment while trading relations enjoy a reset or, whether this is the first sign of a permanent fracture in relations with manufacturers’ biggest market.”

The drop in enthusiasm comes despite Sir Keir Starmer having agreed a trade deal with the US last month.

The deal, which is yet to come into force, was hailed by the Government as a “landmark agreement” that would save thousands of jobs and make it easier for British firms to do business across the Atlantic.

Source: Telegraph

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