Overview of UK Exports to the US#
The value of British goods exported to the United States dropped by 10.3% to £59.2 billion last year, following the introduction of tariffs by the US government. This decline marks the first fall in UK exports to the US since the pandemic began, highlighting the impact of new trade barriers.
Impact of Tariffs#
Since taking office last year, President Trump has implemented tariffs on various imported goods, affecting multiple sectors. For instance, clothing exports fell by over 25% to £288.7 million, while footwear exports decreased by 21.2% to £33.5 million. Notably, car exports, a key sector for the UK, saw a significant decline of 28.1% to £7.5 billion, despite a recent trade deal that reduced tariffs on British cars from 25% to 10%.
Future Tariff Pressures#
Looking ahead, UK exports may face additional challenges as US Treasury Secretary Scott Bessent announced plans for a global 15% tariff. Alex Altmann from Lubbock Fine warns that these tariffs have already diminished the value of British goods exports, and further declines in trade are likely.
Comparison with EU Exports#
The US remains the UK’s largest single trading partner, accounting for 15.6% of the £379.8 billion worth of goods exported by the UK last year. In comparison, Germany, the second-largest trading partner, accounted for 8.9%. Exports to the 27 members of the European Union also fell slightly by 1% to £182.2 billion. Altmann suggests that reducing bureaucratic hurdles with Brussels could enhance trade growth.
Pharmaceuticals and Tariff Exemptions#
The pharmaceuticals and medicinal products sector, the UK’s second-largest export sector, experienced an 8.4% decline in exports to the US, totaling £10.2 billion. However, this sector remains exempt from tariffs, providing some relief amidst the broader challenges faced by UK exporters.