UK exports to US slump to three-year low as tariffs bite
UK exports to US slump to three-year low as tariffs bite
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UK goods exports to the United States fell to their lowest level in three years during the second quarter of 2025, according to new figures from the Office for National Statistics (ONS).
The fall reflects the impact of reciprocal tariffs introduced earlier this year, which have added significant costs to British exporters in sectors ranging from food and drink to chemicals.
William Bain, Head of Trade Policy at the British Chambers of Commerce (BCC), said: “Tariff effects are clearly being felt by companies exporting to the US. Total goods exports across the Atlantic for Q2 2025 were 13.5% lower than a year ago.
“But the UK’s performance is not all bleak, with strong services exports across the second quarter.
“Overall, goods exports showed a Jekyll and Hyde character, with non-EU goods exports badly hit, while goods exports to the EU (nearly half of the UK’s total goods exports) were higher across the quarter.
“This was the first full quarter of the ‘reciprocal’ US tariffs, which add an extra 10% to most UK sectors, from food and drink to chemicals. The effect of these higher costs is becoming clear, with the lowest levels of goods exports to the US for 3 years.
“Implementation of the UK’s trade deal with the US in full is now needed to improve prospects, particularly for steel and aluminium goods.
“The agreement should be a platform to discuss further tariff reform with the US, especially in goods sectors where there is little competition on production.
“We also need Ministers to focus on implementing those areas of the Trade Strategy which can boost goods export sales and growth at pace, while sustaining the rate of progress in services trade.”
The ONS data showed that UK goods exports declined by 6.1% in June 2025 compared with the previous month. Exports to the EU dropped by 2.1%, while sales to non-EU markets fell by 10.2%.
In Q2 as a whole, goods exports to the US were £2 billion lower than in the same quarter a year earlier, a 13.5% fall. Across all destinations, UK goods exports fell by 3.7% in value terms.
Goods exports to the EU rose 3.6% during the quarter, supported by strong demand for power generators and ships. But exports to the rest of the world fell by 9.9%, with manufactured products particularly affected.
The US introduced new reciprocal tariffs in April, with steel and aluminium already subject to 25% levies since March. From 30 June, the US imposed 10% tariffs on UK automotive vehicles and parts, while aerospace products were exempt. Certain copper exports now face tariffs of 50%.
UK goods imports also weakened in June, down 3.6% overall. Imports from the EU fell by 5.7%, while those from non-EU countries declined by 1.5%.
However, in Q2 overall, imports rose by 1.6% in value terms, with EU imports up 3.1% and non-EU imports flat. Chemicals and machinery and transport equipment from the EU performed strongly.
The picture was brighter for services, with exports rising 2.9% over the quarter despite a 0.2% dip in June. Professional, financial and business services, along with travel, led the growth.
Services imports rose 1% in June but slipped by 0.2% across the quarter, with declines in travel, pensions and insurance services.
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