British Exports to US Plunge Amid Record Monthly Decline

British exports to the United States have experienced their most significant monthly decline on record, according to figures from the Office for National Statistics (ONS). In April, the value of UK goods exported to the US dropped sharply by £2 billion compared to March, falling from £6 billion to £4 billion. This marks the steepest downturn since records began in 1997 and highlights the detrimental impact of the recent tariffs imposed by the US government under President Donald Trump.

These tariffs, introduced in early April and labelled the “liberation day” measures, applied a range of import duties on over 120 trading partners. The United Kingdom was among the nations hit with levies, including a substantial 25 per cent tariff on cars, steel, and aluminium. Goods such as machinery and chemicals were also affected, contributing to the severe losses reported by exporters.

The downward trend in exports to the US played a pivotal role in driving the UK’s overall trade deficit to £11.5 billion in April, a three-year high. The ONS also noted a 4 per cent drop in exports to the European Union, equating to an overall fall of £600 million. Conversely, services exports, which were not subject to US tariffs, rose slightly by £200 million during the same period.

William Bain, head of trade policy at the British Chambers of Commerce, emphasised the urgency of implementing the May UK-US partial trade agreement. This deal aims to lower car import duties to 10 per cent on 100,000 British vehicles and eliminate tariffs on steel and aluminium. He highlighted the need for further action to reduce levies on other goods sectors struggling under the economic pressure.

Despite reaching an agreement in principle, the British government has yet to secure a definitive timeline for the implementation of reduced tariffs. Meanwhile, a minimum 10 per cent tariff will remain across various other export categories. Uncertainty surrounding the resolution of trade tensions continues to weigh on market confidence, with industry experts predicting that long-term economic impacts will take time to materialise.

Broader global negotiations further complicate the situation. The Trump administration has engaged in talks with both China and the European Union to mitigate tariffs, though progress has been uneven. Legal challenges to the President’s authority to impose unilateral tariffs add to the unpredictability, with outcomes potentially impacting the UK’s trade strategy.

The current environment underscores the fragility of the UK-US trade relationship and the broader implications of protectionist policies. British industries reliant on exports, particularly automotive manufacturing, steel, and chemicals, face an uphill battle as they navigate shifting tariff frameworks and geopolitical pressures.