Decline in Exports#
British goods exports to the United States saw a significant decline of 15.5% in January, totaling £4.2 billion. This marks the third consecutive month of falling exports, according to data from business advisers Lubbock Fine. The January figure is also an 11.3% drop compared to December 2025 and a decrease from £4.9 billion in January 2025.
Key Factors Behind the Drop#
The primary driver of this decline was a £400 million reduction in exports of machinery and transport equipment, particularly cars. Most other categories of goods also experienced decreases, contributing to the overall decline in trade with the US.
Impact of Tariffs#
The drop in exports follows the introduction of tariffs by President Donald Trump on various goods entering the US since his return to office last year. For the year ending December 31, 2025, UK goods exports to the US fell 10.3% to £59.2 billion, marking the first annual decline since the pandemic began.
Despite a trade deal agreed with the US government in May, UK exports are facing additional pressures as US Treasury Secretary Scott Bassent announced an imminent global 15% tariff.
Trade Relations with the EU#
The US accounted for 15.6% of the UK’s total goods exports of £379.8 billion last year. In comparison, exports to the 27 European Union member states totaled £182.2 billion in 2025, showing a slight decrease of 1% from 2024.
Alex Altmann, a partner at Lubbock Fine, suggested that reducing trade barriers with the EU could help mitigate the decline in US exports. He pointed out that simplifying import and export declarations and reducing inspection requirements could enhance trade growth, especially concerning food, drink, plants, and animal products.