America remains a growth market for British businesses, but slow corporate profits, sticky inflation and a raft of government-level regulations mean success rates have been raised, according to leading audit, tax and advisory firm Blick Rothenberg.
The United States is still growing, but the light winds that once carried eager British shippers across the Atlantic are fading. New figures from the US Bureau of Economic Analysis show that real GDP grew at an annual rate of 1.6 percent in the first quarter of 2026, real final sales to private domestic consumers rose 2.4 percent, a sign that households and businesses are still spending, even if profit growth is slowing.
For UK companies weighing on the American push, the message from Blick Rothenberg is unequivocal: the opportunity is real, but the margin for error is smaller than it has been for a long time.
It’s a growth market, but a solid one
Michael Holland, Partner and US Expansion Leader at the firm, said the latest BEA data confirms that the US remains a growing market for UK traders and investors. “The US economy is still expanding, with GDP growing at an annual rate of 1.6 percent in Q1 2026. Core domestic demand is holding steady, as real final sales to private household consumers increased by 2.4 percent, suggesting that consumers and businesses are still spending. However, as inflation remains high and corporate profit growth to slow sharply, growth is slowing.”
His comments come against a backdrop of growing tensions over the transatlantic trade corridor. According to the Office for National Statistics, UK exports to the US have been volatile since Washington introduced its latest round of tariffs, with sharp month-to-month fluctuations as British traders restructure supply chains and prices.
America is not a single market
Holland is clear that it is a common strategic mistake to treat the US as a single, common target. “The strategy for British firms to succeed in this area needs to start with the recognition that the US is a very large and very diverse country, there is no single uniform market,” he said. “Successful expansion strategies tend to focus on certain regions first, whether it’s the East Coast, the Pacific Northwest, the Northeast or the central states — rather than trying to target the entire US at once.”
For founders looking at where to plant a flag, the practical questions are familiar to anyone who has crossed the Atlantic before: is there real demand, what does the property tax and regulatory mix look like, and how do pricing and operating costs reshape unit economics? As Business Matters has explored in its guide to key strategies for UK tech companies expanding into the US, local hiring, partnerships and a regional mindset are what separate the winners from expensive spin-off plans.
Prices, routes to market and the cost of getting it wrong
Holland says British firms need more guidance on pricing and capital allocation before committing. “Firms need to assess whether there is a real customer base for their product or service, determine which locations offer the best fit, and understand how local regulations, taxes, pricing and operating costs will affect the margins,” he said. “They need to think carefully about pricing, routes to market and how much investment is required before a business can trade.”
That diagnosis is consistent with broader advice to enter markets during an international expansion, which often points to price declines and cash shortages as silent killers of overseas business.
For SMEs in particular, the temptation to chase US revenue in the article without carefully considering the costs involved, the country’s sales tax exposure and the distribution economy can quickly turn a promising launch into a cash-out.
Pulled in America, not pushed
The UK’s strongest entrants, Holland suggests, are those who respond to demand rather than rush it. “The British businesses that are most likely to succeed are those that are drawn to the US by genuine customer demand and have a well-thought-out strategy to make the most of that opportunity,” he said.
That advice is similar to the work of trade organizations such as BritishAmerican Business, whose trade and investment guide for UK companies in the US has become a standard reference for the boards that weigh the transatlantic movement.
The playbook for 2026
Holland’s closing message is one that British founders and financial directors should stick on the wall. “The British businesses that will thrive in 2026 are those that are focused on where they play, focused on how they cost, and realistic about the cost and complexity of US scaling.”
In a year when American consumers are still spending but corporate margins are tightening, the UK companies that win in the States will be those that resist the urge to plant a flag everywhere, and instead pick their plot, hone their numbers and find their growth.
