Welsh exporters navigate tariffs and uncertainty but show signs of growth in Q2, survey reveals
Welsh exporters navigate tariffs and uncertainty but show signs of growth in Q2, survey reveals
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An evolving trade landscape has produced mixed results for Welsh businesses trading internationally in the second quarter of 2025, according to the latest Quarterly Economic Survey from Chambers Wales South East, South West and Mid.
The report found that 41% of Welsh businesses saw export sales remain steady in Q2, while 31% reported an increase in export orders and advanced bookings – up from 25% in Q1 – suggesting a positive outlook for future trade.
The quarter was marked by shifting trade conditions, particularly following President Trump’s ‘Liberation Day’ announcement in April and a series of changing tariffs introduced during UK-US trade talks. Fifteen per cent of Welsh businesses said they had been directly affected by the US’ 10% import tariffs, while 23% reported that wider global tariffs had impacted their business or supply chain.
Some firms reported no immediate effect from the tariffs, but others saw US trade slow, with fewer enquiries and orders as uncertainty mounted. Nearly a quarter (23%) of businesses indicated they would reassess the country of origin of goods to avoid tariff costs.
David Peña, Director of International Trade at Chambers Wales, said: “It has been an unpredictable period for international trade, with ever-changing tariff decisions and trade talks progressing. Tariffs can act as a trade barrier to fostering long-term growth, and it is clear that the US’ decisions have impacted businesses in Wales whether directly or through supply chains.
“At Chambers Wales, we stand for trade, commerce and economic growth and this data will shape how we support businesses in Wales through market volatility and towards growth.”
Beyond trade, the survey highlighted ongoing recruitment challenges. Forty-four per cent of businesses in Wales attempted to recruit in Q2, but two-thirds reported difficulties in finding suitable candidates. Most businesses (67%) expect their workforce numbers to remain constant next quarter, though 24% have increased investment in training, suggesting a shift towards upskilling existing staff.
As in previous surveys, companies reported pressure to raise prices due to labour costs, while taxation remains their biggest external concern.
Gus Williams, interim CEO of Chambers Wales, said: “Despite a mixed picture in the world of international trade, it is heartening to see the positives in our survey results from increases in export orders to investment plans for training.
“Of course, pressures persist particularly around recruitment, labour costs and taxation. With the UK Government unveiling its Industrial Strategy and Trade Strategy, we are seeing the beginnings of a long-term coherent approach for business support which may alleviate some of the recurring concerns that businesses in Wales are sharing with us.”
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