EXPORTING MADE EASY
If you run an export-oriented business in the UK or are considering branching out internationally, recent developments in global trade policy make one thing clear: your success will increasingly depend not only on what you sell and where you sell it, but how you navigate shifting regulation, supply-chain fragility and geopolitical risk.
In this blog for Exporting Made Easy, we’ll unpack a very topical story from the past few days, highlight how it impacts UK exporters, and walk you through actionable steps you can take right now.
What’s happening?
Two of the most significant developments from this week are:
The United States is considering new export restrictions on products made with U.S. software that are shipped to the People’s Republic of China.
At the same time, the U.S. and Qatar have issued a warning to the European Union over its planned Corporate Sustainability Due Diligence Directive (CSDDD), a climate and human-rights regulation that the U.S. and Qatar view as an “existential threat” to parts of their economies.
Together, these signals send a strong message: the global export environment is not purely commercial anymore—it has become deeply strategic and regulatory.
Why this matters for UK exporters
Although you're based in the UK, these shifts matter for several reasons:
Indirect impact of U.S. export policy: If U.S. software becomes restricted, it isn’t just American firms that suffer — global supply chains that rely on U.S.-origin software or components will feel the effect. If your exported goods incorporate such software (even if built in the UK), you could face delays, higher costs or blocked shipments.
Regulation spillover: The EU’s new regulation (CSDDD) and similar initiatives raise compliance burdens for companies supplying into the EU. And because the UK often aligns with similar standards (or at least needs to consider them when exporting into European markets), UK exporters must watch these moves closely.
Supply chain diversification / “friend-shoring”: These developments reinforce the trend that companies are moving away from purely cost-driven sourcing and instead are weighing resilience, regulatory alignment and strategic control. As a UK exporter, this is an opportunity — but also means you must keep your supply-chain, compliance systems and export readiness robust.
UK trade environment is still fragile: The UK is showing signs of modest economic recovery but faces headwinds. On 23 October 2025 it was reported that UK manufacturers experienced their largest drop in orders since 2020. For exporters that means margins may come under pressure, and global uncertainty could dampen demand.
In practical terms: how UK firms should respond
Let’s turn this situational analysis into a set of actionable steps for exporters visiting Exporting Made Easy.
Step 1: Review whether your goods/services incorporate restricted inputs
Ask: Does your product (or its components) incorporate software, technology or components of U.S. origin (for example, U.S.-written software, licensed chips, firmware) that might fall under U.S. export control?
If yes: This is a red-flag. You might need to verify the licensing status, or prepare contingency plans (alternate software, non-U.S. components) so that your exporter risk is mitigated.
Also: Check whether your goods fall under “dual-use” classification (items that have both civilian and military potential) which in the UK may require specific licensing.
Step 2: Map your destination markets and their regulatory environments
If you export into the EU (or have supply chains that go via the EU) you should review the upcoming CSDDD rules and how they might affect you (e.g., due diligence obligations, upstream supply-chain checks). The U.S./Qatar warning around the EU rules highlights how export/regulation is becoming more global.
If exporting to other jurisdictions (Asia, Americas), check both destination country rules and upstream component/supply chain rules — because many new control regimes are global rather than simply bilateral.
Step 3: Strengthen your supply-chain resilience
Consider “what if” scenarios: if one supplier is blocked, or some component becomes unavailable (whether for regulatory, geopolitical or logistical reasons) how will you respond?
Identify alternate suppliers (domestic, regional) of critical components — even if they cost more, for some goods you may prefer resilience over lowest cost.
Keep records of origin, components, certifications: this helps you respond swiftly if customs, buyers or regulators ask questions.
Step 4: Update your export compliance processes
Make sure your export documentation is up to date: classification codes, licences, certificates of origin, contracts that specify regulatory compliance.
Use the UK Government guidance for exporting goods: make sure you have EORI number, know how to classify goods, know what licences you need.
If your goods have software or tech components, consider professional advice about export controls (both UK and foreign) and trade-sanctions risk.
Step 5: Explore new markets & opportunity from regulation shifts
While regulatory change introduces risk, it also opens opportunity: countries may shift sourcing away from markets seen as politically risky; supply chains may rotate toward more “trusted” exporters. For UK firms with the right compliance infrastructure, this could be a window.
For example, if U.S. export restrictions to China tighten, companies may seek alternate partners or routes — UK firms with the right offering and regulatory readiness could win business.
At the same time, track how markets are opening: the UK’s engagement with Latin America (Argentina/Brazil) and other regions suggests diversification strategies.
A deeper dive: the U.S. software embargo proposal and its implications.
Let’s examine one of the headline stories in a little more detail.
On 22 October 2025, Reuters reported that the U.S. is considering curbs on exports to China of goods that use U.S. software or were manufactured with U.S. software. This is significant for several reasons:
It signals that the U.S. is broadening its export-policy toolbox. It is no longer just targeted high-tech items or defined military goods — it is looking to control any item whose supply chain includes U.S. software.
That means firms well beyond American shores could be caught. If you manufacture in the UK or elsewhere but use U.S. licensed software (design, control, firmware) in your goods, you might fall under this control regime. The ripple effect in global supply chains could be material.
For exporters, this underscores the importance of origin and content: it may not matter where a good is made if a key software component is U.S. controlled.
For UK businesses exporting to China, or exporting via China, this becomes a red-alert: you must ask questions about upstream input sources and licensing.
What should you do?
Map your software and tech inputs: identify where you rely on foreign-software, and check licence-terms and jurisdictional risk.
Consider alternate software/firmware routes: Can you substitute non-U.S. software, or non-U.S. routed production to reduce exposure?
Engage with legal or trade-compliance advisors: If you export to China, you may need to demonstrate transparency about your supply chain and licences.
Keep monitoring: The policy is still being considered, but that means you have a window of time to be ahead of the curve.
Another angle: EU regulation and the “de minimis” import duty change
The story around the EU’s Corporate Sustainability Due Diligence Directive (CSDDD) and the UK’s suggestion it may drop its “de minimis” import-duty exemption is also worth dissecting. According to recent trade-news commentary: “Today’s trade news includes a stark warning from the US and Qatar to the EU over its planned new climate- and human-rights-focused rules … the UK could axe its ‘de minimis’ duty-rate exemption on small-package imports.”
Key take-aways:
The UK may change its treatment of small-value imports (i.e., packages under a certain value that previously had reduced/no duty) — this suggests that even small-scale exporters or online-exporters should check whether they will face altered duty/exemption rules.
The broader point: regulatory changes are cascading. Not only are export controls being tightened, but import regimes, sustainability due-diligence obligations, corporate supply-chain transparency, and cross-border obligations are being re-shaped. UK exporters must keep their finger on these evolving rules.
If you sell directly to consumers overseas (via e-commerce), small-package exemptions often matter a lot (for cost and speed). Changing the rules may impact your pricing, margin or competitiveness.
What this means for SME exporters, in particular
UK small and medium-sized exporters face both challenges and opportunities:
According to one report, UK SMEs that export grow faster, are more productive and pay higher wages compared to those serving only the domestic market.
But to succeed, they need the right infrastructure: export readiness, supply-chain resilience, regulatory compliance, and agility.
For SMEs, the regulatory burden can feel heavier (limited resources, less specialist staff). That means planning ahead, seeking export-advisory help, and staying informed is critical.
The payoff: When competitors are shaken by regulatory change, firms that are compliant and well-prepared may gain market share.
Bringing it all together: a checklist for your next 90 days
Audit your product inputs and software/tech content
Which software licences do you use? What is their origin?
Do any components or manufacturing steps rely on U.S.-origin technology or software?
Are any goods you export or supply dual-use (civil/military) or subject to licensing?
Review your export markets and route-to-market strategy
Which countries are you exporting to (or planning to)? What is the regulatory environment there (customs, duties, due-diligence, sustainability)?
For each destination, have you assessed: duty tariffs, documentation, certificate-of-origin obligations, licensing needs?
Are you overly reliant on one market or one supply-chain route that may be vulnerable?
Update your export compliance framework
Make sure you have a valid EORI number, correct commodity codes, and know your documentation obligations.
If relevant, check with the UK’s Export Control Joint Unit (ECJU) whether your goods or components are subject to licensing.
Review your contracts: include clauses on regulatory change, export-control obligations, supply-chain disruption.
Record keeping: maintain invoices, export declarations, licensing records, shipping documentation.
Build supply-chain resilience and alternative paths
Identify key dependencies (software, components, suppliers).
Are there non-U.S. alternatives for components or software?
Diversify suppliers (geographically and by risk profile).
Consider how logistical or regulatory disruption might impact your lead-times or costs, and build buffers.
Stay informed and agile
Subscribe to trade-news alerts, government export-control updates, and regulatory changes affecting your markets.
Review your export strategy quarterly given how dynamic the environment is.
Use networks, export support organisations, trade bodies, and government resources (e.g., UK Trade & Investment, local trade missions) to stay up to date.
Why this moment may be particularly important.
We are arguably in a turning point for global trade. In a recent speech, Swati Dhingra of the Bank of England noted that the effective tariff rate for the U.S. has reached its highest since the 1930s Smoot-Hawley tariff era — a stark signal of trade policy entering a more confrontational and fragmented phase.
What does that mean for you and your business?
Rules that we assumed to be stable (trade agreements, open borders, straightforward supply chains) may no longer hold.
There is rising cost and complexity of exporting: regulatory compliance, licensing, documentation, geopolitical risk.
But equally, firms that navigate this well may gain advantage: if you are seen as a “trusted” exporter (compliant, resilient, transparent), you can win business as buyers de-risk their supply chains.
For UK exporters, the message is clear: being reactive is no longer sufficient. You need proactive strategy, monitoring and readiness.
Key take-aways for exporters
Don’t assume “just because you're exporting goods, it’s straightforward”. Even non-military goods can be subject to export controls if they incorporate software or technology of certain origin.
Compliance is not a cost to ignore. If non-compliance causes delays or blocked shipments, the cost in lost business and damaged reputation can be far greater.
Diversification pays. Whether of markets, suppliers, or technology inputs, diversifying lowers risk.
Documentation and origin matter. The simpler and clearer your trail of origin, inputs and licensing, the better you’ll be able to respond to regulatory or customs scrutiny.
Be ready to evolve. The rules today may not be the rules tomorrow. Stay alert and build flexible systems.
Exporting still offers growth. While the environment is more challenging, exporting remains a growth route. SMEs that get it right can benefit. For UK SMEs that export, export-oriented firms grow faster and pay higher wages.
Final word
Here on Exporting Made Easy, our goal is to make the complex world of export simpler to understand and actionable for UK businesses. The landscape is changing. What were once “nice to know” aspects (software origin, regulatory due diligence, supply-chain geography) are now very much “need to know”.
If you are an exporter or planning to export in 2026 and beyond, this is a moment to sharpen up your processes, review your inputs and markets, and build resilience into your export strategy. The rules are changing, the risks are rising — but so too are the opportunities for firms that can adapt.
If you’d like to explore how this affects your business specifically (based on your product, markets, supply-chain) feel free to reach out. In the meantime: review your inputs, tighten your compliance, and stay in front of change.
Here’s to exporting made easier, smarter and more resilient.