UK goods exports to the United States plunged by £2 billion in April, marking the sharpest monthly drop since records began in 1997. Official data from the Office for National Statistics showed a fall from £6.1 billion in March to £4.1 billion in April - the lowest figure in over three years. This 33% decline followed Donald Trump's imposition of sweeping new tariffs, most notably 25% on British steel and aluminium from 12 March, and later, 27.5% on cars along with a blanket 10% on other imports.
The collapse in exports contributed directly to a sharper-than-expected contraction in UK GDP for the month. In contrast, Germany's exports to the US dropped a more modest 10.5% - a seasonally adjusted figure - underscoring the disproportionate hit to British trade.
Pre-tariff stockpiling offers limited cushion
The British Chambers of Commerce suggested the dramatic slump partly stemmed from businesses front-loading shipments in March to avoid anticipated tariffs. Nevertheless, April’s goods exports to the US were still 15% lower than a year earlier, highlighting the persistent disruption. William Bain, head of trade policy at the BCC, warned that "thousands of UK exporters are dealing with lower orders and higher supply chain and customer costs".
The US remains the UK’s top single-country goods export market, crucial for sectors like automotive manufacturing, though total exports to the EU still surpass those to the US.
Trade deal in limbo
The two countries agreed in May on a framework to lift the new tariffs on steel, aluminium, and cars - making Britain the only nation to secure such a concession - but the accord has yet to take effect. Meanwhile, the 10% general tariff on other British goods remains in place. Prior to this agreement, the Bank of England estimated the tariffs would cut UK GDP by 0.3% over three years.
Trade balance tilts further
The export hit widened Britain’s global goods trade deficit to £23.2 billion in April, up from £19.9 billion in March - the broadest gap since January 2022. Excluding precious metals, often a source of data volatility, the deficit stood at £21.6 billion, the worst since May 2023.
Once Britain’s surplus in services exports is factored in, the overall trade deficit still widened to £5.4 billion in April - again, the largest since May 2023.
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