SMMT summit

EU urged to keep British auto supply chains within “Made in Europe” framework

May 13, 2026 | , , , , , ,

The UK automotive industry is urging the European Union to preserve close manufacturing integration with Britain as Brussels advances new industrial policies designed to strengthen European supply chains and accelerate domestic electric vehicle production.

The Society of Motor Manufacturers and Traders (SMMT) has warned that proposed EU “Made in Europe” measures could unintentionally damage one of the world’s most integrated automotive manufacturing relationships if UK operations are excluded from future incentives and industrial support mechanisms.

The concerns centre on the EU’s proposed Industrial Accelerator Act (IAA), a key part of the bloc’s wider “Made in Europe” strategy aimed at strengthening European manufacturing, accelerating decarbonisation and improving competitiveness against the US and China.

UK and EU automotive manufacturing remains deeply interconnected

The SMMT recently met EU representatives in Brussels to discuss how the proposed legislation could affect cross-border automotive manufacturing and whether UK operations would remain eligible for support linked to the “Made in Europe” framework.

The industry body argues that the UK and EU automotive sectors remain fundamentally interdependent despite Brexit, with the EU exporting over €9bn worth of automotive components to UK manufacturers every year, making Britain the largest single export market globally for EU automotive parts.

These flows include battery systems, electric motors, traditional powertrain components, electronics, body panels and high-value engineered parts that move repeatedly between the UK and EU during the manufacturing cycle.

The wider UK–EU automotive relationship is now estimated to be worth around €80bn annually, while UK factories remain the EU’s largest export market for passenger vehicles, worth almost €40bn per year to European manufacturers.

SMMT chief executive Mike Hawes said, “Brexit put the resilience of our shared industry under enormous stress, but manufacturers have overcome those challenges to grow our trade in electrified vehicles alone to record levels.”

The organisation argues that excluding UK operations from future “Made in Europe” incentives could weaken both UK and EU manufacturing competitiveness by disrupting deeply integrated supply chains that have evolved over decades.

Industrial policy becoming increasingly tied to supply chain geography

The proposed Industrial Accelerator Act forms part of a broader shift towards more interventionist industrial policy across major global economies.

The EU’s objective is to accelerate decarbonisation, strengthen domestic manufacturing capability and reduce strategic dependence on overseas supply chains, particularly in areas linked to electric vehicles, batteries and advanced technologies.

The concern for UK manufacturers is whether British suppliers, assembly operations and associated supply chains would qualify for the same incentives and support structures as EU-based competitors.

The SMMT has warned that excluding UK operations from the framework could create new friction across automotive supply chains at precisely the moment manufacturers are trying to accelerate investment into electrification, battery production and low-emission vehicle technology.

Global trade pressure adds further complexity

The debate also comes as the automotive industry adapts to increasingly fragmented global trade conditions.

Following the 2025 UK–US trade agreement, the United States became the UK’s largest export market for cars, with more than 101,000 UK-built vehicles shipped to the US during 2024, worth around £7.6bn. The agreement reduced US tariffs on British-built vehicles from 27.5% to 10% within a quota of 100,000 vehicles, providing important support for premium and luxury manufacturers serving the American market.

At the same time, European automotive manufacturers continue pushing for progress on EU–US trade negotiations amid concerns that tariff disputes and industrial competition could create further instability across international manufacturing networks.

Despite these global shifts, UK automotive leaders continue to stress that Europe remains operationally critical from a manufacturing, sourcing and logistics perspective.

Metro supports automotive manufacturers, suppliers and aftermarket businesses with integrated freight forwarding, customs support and multimodal logistics solutions designed for highly time-sensitive international supply chains. 

From UK–EU customs coordination and inbound production logistics to time-critical component distribution and international freight management, Metro helps automotive customers maintain continuity across complex manufacturing networks operating under changing regulatory and trade conditions.

EMAIL Managing Director, Andrew Smith, today to learn more.

EU UK negotiations 2

UK–EU reset could ease border friction for importers and exporters

May 13, 2026 | , , , , , , , , , , , , , , , , , , , ,

On 13 May 2026, the King's Speech set out the government's plans for the next Parliamentary session, including efforts to reset post-Brexit relations, forge closer economic ties with the EU and reduce unnecessary barriers to trade.

The reset is not a return to the single market or customs union. Instead, it is being presented as a targeted attempt to stabilise the trading relationship through closer alignment in specific areas where the government believes reduced friction could support growth, cut costs and improve supply chain efficiency. 

SPS alignment could simplify GB–EU border processes

The government intends to pass legislation by the end of 2026 to enable an SPS agreement with the EU to take effect by mid-2027. The agreement would cover animal and plant health, food safety and related agri-food rules, with the UK aligning to relevant EU legislation in order to ease border procedures.

SPS controls have been among the most disruptive post-Brexit trade barriers, creating additional documentation, inspection, certification and timing challenges at the GB–EU border.

A veterinary-style agreement could reduce the need for some routine checks and help make border movements more predictable. For exporters, this may improve access into EU markets. For importers, it could reduce delays, compliance costs and uncertainty when bringing goods into Great Britain.

Emissions trading alignment could reshape supply chain costs

Alongside the SPS agreement, the government is also negotiating closer alignment between the UK and EU emissions trading schemes (ETS), designed to reduce regulatory divergence and support longer-term industrial and energy cooperation. 

For businesses involved in manufacturing, energy-intensive production, transport and international trade, the implications could extend well beyond environmental policy.

A linked or more closely aligned ETS framework could help reduce friction for exporters trading into Europe, particularly as the EU continues expanding carbon-related trade measures and compliance requirements. It may also provide greater long-term certainty for businesses operating across both UK and EU markets.

Dynamic alignment brings certainty but also new compliance considerations

The proposed reset relies on dynamic alignment in selected areas, meaning UK rules would keep pace with relevant EU law as it evolves. This is central to the government’s ambition to reduce border friction, because smoother trade processes depend on both sides recognising equivalent standards.

For logistics and supply chain teams, this could provide greater medium-term certainty over the regulatory framework affecting GB–EU trade. However, it also means businesses will need to monitor changes in EU rules that may flow into UK requirements over time.

The wider political debate remains active. Critics argue that dynamic alignment could reduce UK regulatory flexibility, while others want the government to go further and pursue a customs union. 

What this means for UK traders

The direction of travel may point toward a less burdensome GB–EU trading environment, but the more realistic reading is:

  • Customs declarations are not going away simply because an SPS deal is agreed.
  • Rules of origin issues are not being removed by the reset as described in this briefing.
  • What may improve is the regulatory layer sitting on top of customs processes for certain categories of goods, especially agri-food.

That distinction matters, because a truck can still need customs processing even if SPS checks become lighter or less frequent.

So the likely benefit is not “no border”, but a border with fewer SPS-related interruptions, fewer compliance mismatches and a lower chance that a shipment is delayed because UK and EU technical rules have drifted apart.

Importers and exporters should now review where SPS controls, border checks, certification or documentary requirements are creating cost, delay or uncertainty in their supply chains. They should also assess whether current customs and compliance processes are flexible enough to adapt as the UK–EU framework develops.

As the UK–EU reset develops, Metro is helping customers assess how changing customs procedures, SPS requirements and evolving regulatory alignment could affect their supply chains, transit times and compliance obligations. 

Through integrated freight forwarding, customs support and cross-border logistics expertise, Metro helps businesses prepare for changing GB–EU trade conditions and maintain efficient cargo flow across European supply chains.

EMAIL Managing Director, Andrew Smith, today to learn more.

Truck in Switzerland

A tougher European road market and a UK edging back towards it

Apr 15, 2026 | , , , , , , , , , , , , ,

For years, the road freight market has been under sustained pressure, shaped by a combination of post-Brexit structural change, rising costs and geopolitical disruption. 

At the same time, there are early signs that the UK may begin to move closer to Europe in practical, trade-focused ways, in a shift that could have meaningful implications for cross-border logistics.

For now, however, the market remains challenging.

Since Brexit, UK–EU road freight has been defined by increased friction. New customs processes, regulatory checks and border systems have added cost, complexity and delay, particularly for groupage and mixed loads.

The impact is clear in the data. Road freight volumes are estimated to be down by over 10% since Brexit, reflecting weaker trade flows and reduced demand. UK exports to the EU have also taken a structural hit, with studies pointing to a decline of around 16%.

At the same time, the number of operators has fallen sharply. Between 2021 and 2025, 2,051 UK road haulage companies became insolvent, which is almost double the 1,068 recorded in the previous five-year period. That equates to nearly eight hauliers exiting the market every week.

This combination of lower volumes and higher costs has fundamentally reshaped the sector. Capacity has tightened, margins have come under pressure, and the market has consolidated around stronger, more resilient operators.

Rising costs and the impact of the Iran war

The Iran conflict has added a new layer of pressure at a time when the sector was only just stabilising. Fuel costs, which can account for up to 30% of operating expenses, have risen sharply, with industry bodies warning this represents a structural shift rather than a temporary spike.

Across Europe, operators are now dealing with sustained fuel volatility, tightening supply and increasing financial strain. The knock-on effects are being felt across the entire road freight ecosystem, from pricing and capacity to investment decisions and fleet utilisation.

At the same time, additional cost pressures continue to build. Driver shortages remain unresolved, pushing up wages and limiting flexibility. New tolling regimes are increasing the cost of operating across key European markets. Regulatory changes, including evolving border systems on both sides of the Channel, are adding further administrative burden.

This is not just a UK issue. Across Europe, the road freight market remains fragile, with growth limited to just 0.5%, with many key markets recording declines.

The short-term outlook is closely tied to energy markets, geopolitical developments and spiking fuel costs. In this environment, many operators are focused on protecting margins and maintaining utilisation rather than expanding. Investment is being delayed, networks are being rationalised, and risk appetite remains low.

Signs of a closer UK–EU relationship

Against this backdrop, there are early signs of a shift in the UK–EU relationship. As the Trade and Cooperation Agreement comes up for review, both sides are exploring ways to reduce friction and improve trade flows.

Potential developments include veterinary and SPS agreements to streamline border checks, deeper customs cooperation and more structured alignment on energy and climate policy. For road freight, these are not abstract political discussions, they directly influence transit times, costs and reliability.

Even incremental improvements could have a meaningful impact, helping restore confidence, support volume recovery and reduce operational complexity.

Metro’s European division bucks the trend

While much of the market is under pressure, Metro’s European road freight division is moving in the opposite direction.

The division has been growing at 40% per year, making it Metro’s fastest-growing business unit. This performance stands in sharp contrast to the wider market, where volumes are flat or declining and operators are exiting the sector.

This growth has been driven by a clear and deliberate strategy. Metro has invested in building a strong European network, with high-quality groupage services into key markets including the Netherlands, Turkey, Poland and Iberia, alongside established strengths in France and Germany.

The business offers a balanced mix of less-than-truckload (LTL) and full-truckload (FTL) solutions, with a range of equipment, security and service options, giving customers flexibility as demand patterns shift. Crucially, the focus is on tailored, customer-led solutions, adapting routing, transit times and documentation processes to meet specific requirements.

In a more complex post-Brexit environment, this approach is proving highly effective. Rather than avoiding complexity, Metro is helping customers navigate it, smoothing customs processes, reducing risk and maintaining flow across European supply chains.

As the European road freight landscape continues to evolve, Metro provides the expertise, network strength and proactive approach needed to keep goods moving. Helping customers manage complexity, control cost and unlock opportunity across UK–EU trade. 

EMAIL our Managing Director Andy Smith to learn how we can secure your European supply chains.

shopping

EU insights for ambitious UK retailers and brands

Mar 3, 2026 | , , , , , , ,

As global trade patterns shift and US tariffs reshape export economics, many UK fashion brands are re-evaluating where growth will come from next.

For an increasing number, the answer is closer to home. The European Union — a £250bn clothing market — is once again becoming a strategic priority for scalable, lower-risk international expansion.

At Metro, we are seeing a clear trend: brands that previously focused on the US are now actively re-establishing or expanding EU operations. The commercial logic is compelling, but success depends on understanding the operational realities.

Europe makes strategic sense again

Under the UK-EU Trade and Co-operation Agreement, most qualifying UK goods can enter the EU tariff-free, provided rules of origin are met.

Compared with elevated US baseline tariffs and longer transatlantic lead times, the EU offers:

  • Shorter transit times
  • Lower freight costs
  • Established e-commerce and wholesale networks
  • Cultural and style alignment
  • A large, affluent consumer base

However, while tariffs may be reduced, compliance complexity remains.

The EU opportunity is real — but it is not frictionless. Brands need to approach it strategically, with proper customs planning, VAT management and logistics alignment from day one.

Choosing your route to market

There is no single entry model. Most successful brands adopt a hybrid approach.

Marketplace Partnerships

Many UK retailers are leveraging major EU marketplaces to accelerate scale.

Benefits:

  • Immediate access to multiple markets
  • Localised checkout and VAT handling
  • Established logistics networks
  • Faster delivery and returns

However, marketplace integration is not a silver bullet. Service charges, data integration, and margin considerations must be assessed carefully.

Establishing an EU entity

Setting up a legal entity in an EU member state has become more streamlined post-Brexit.

While it requires tax and legal advice, having an EU-based operation can:

  • Simplify VAT registration
  • Improve customer experience
  • Reduce cross-border friction
  • Enable more seamless returns management

Many exporters continue to route EU goods via the Netherlands due to infrastructure strength and customs efficiency.

Wholesale & distribution

Wholesale partnerships remain a powerful growth lever.

Brands are:

  • Partnering with department stores and independents
  • Appointing local distributors in key territories
  • Entering market-by-market rather than pan-EU immediately

Europe is not homogenous. Germany is not Spain. Italy is not Poland.

Localised strategy is essential.

De-minimis changes & customs evolution

The EU is ending its €150 de minimis duty exemption.

In 2024 alone, 4.6 billion low-value consignments entered the EU under this regime. 

Regulatory tightening aims to improve compliance and level competition.

Key implications:

  • Additional handling fees likely
  • Greater customs scrutiny
  • VAT management changes
  • Phasing out of the Import One Stop Shop (IOSS)
  • Introduction of the EU Customs Data Hub (from 2028)

Regulatory tightening increases compliance cost in the short term, but it also creates opportunity. Brands that invest in structured customs processes now will gain competitive advantage as enforcement strengthens.

Ship from UK or hold EU stock?

Many retailers initially ship EU orders from their UK hub, often supported by limited EU warehousing.

As volumes grow, models evolve toward:

  • EU-based fulfilment centres
  • Regional distribution capability
  • Consolidated inventory hubs
  • Faster returns processing

Efficient third-party logistics support is critical, particularly for managing VAT, customs documentation, and reverse logistics.

Sustainability & regulatory compliance

The EU remains at the forefront of sustainability regulation.

Fashion exporters must prepare for:

  • Ecodesign for Sustainable Products Regulation (ESPR)
  • Digital product passports
  • Product Environmental Footprint (PEF) requirements

Sustainability compliance in the EU is no longer a branding choice, it is market access infrastructure.

Brands that build traceability into supply chains now will be better positioned globally as similar standards emerge elsewhere.

Long-term thinking wins

Recent tariff volatility has reinforced one lesson: international expansion requires a long-term horizon.

Successful EU strategies typically:

  • Combine DTC, wholesale and marketplace channels
  • Phase entry by priority markets
  • Invest in compliance early
  • Build local partnerships
  • Use logistics as a competitive advantage

Europe’s scale, proximity and consumer alignment make it a logical next growth chapter for UK fashion brands.

But operational detail determines commercial success.

Final thoughts

The EU is not a return to pre-Brexit simplicity, but it is a structured, opportunity-rich market for brands willing to approach it strategically.

Entering Europe successfully isn’t about finding demand — demand is there. Metro’s experts can help you design the right logistics, compliance and localisation model to serve it efficiently.

For UK retailers ready to expand, Europe is no longer a fallback market.

It is becoming the priority again.

To learn about our EU-wide logistics, compliance and localisation services, and how we can help you grow your business in the EU with confidence, please EMAIL our Managing Director Andrew Smith.

Category: EU

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