UK exports to U.S. pluge 25%

After the introduction of President Donald Trump’s “liberation day” tariff blitz, U.K. goods exported to the U.S. experienced a significant decline of around 25%, according to official data from the Office for National Statistics (ONS). This drop in exports amounted to £1.5 billion, representing a 24.7% decrease in goods exports to the United States, excluding precious metals. Car exports from the U.K. to the States also saw a decline and have remained below pre-tariff levels in the 12 months following April 2025.

In contrast to the decrease in exports, imports of goods from the U.S. increased at the beginning of 2026, resulting in a trade deficit with the U.K.’s largest trading partner for three consecutive months. The trade deal secured by the U.K. with the Trump administration last year included a 10% blanket tariff on goods imported to the United States, marking the end of the zero-tariff trade environment for exporters on both sides of the Atlantic. This move led to additional duties being imposed on Scotch whisky and other spirits exported from Britain to America.

Recently, President Trump announced the removal of all tariffs on Scotch whisky “in honor” of King Charles III and Queen Camilla following their state visit. While this gesture is welcomed by the Scotch whisky industry, which employs around 40,000 people in Scotland and accounts for 23% of all Scottish goods exports in 2025, it may not be sufficient to address the overall British trade deficit.

Samuel Edwards, head of client portfolio management at Ebury, highlighted the challenges faced by exporters due to higher trading costs from tariffs, increased employment costs and taxes, as well as input price pressures. These factors are eroding margins and making it increasingly difficult for U.K. businesses to compete internationally.

The U.S. remains the U.K.’s largest export market, and the significant downturn in exports is expected to have broader implications on overall UK economic growth. It is crucial for businesses to adapt to the changing trade landscape and navigate the challenges posed by evolving trade policies to maintain competitiveness in the global market.

References:
– Original article from CNBC: https://www.cnbc.com/2026/06/18/uk-exports-to-us-plunge-25percent-since-trumps-tariff-blitz.html
– Image source: Brendan Smialowski | Afp | Getty Images

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