The value of British goods exported to the United States fell by 10.3% to £59.2bn in 2025, marking the first annual decline in UK exports to the US since the pandemic.
Analysis of official trade data by chartered accountants and business advisers Lubbock Fine shows that the downturn followed the introduction of sweeping US tariffs on imported goods. The measures were implemented after President Donald Trump returned to office last year and introduced a baseline 10% tariff on UK exports, with some sectors facing much higher duties.
The United States remains the UK’s largest single export market, accounting for 15.6% of all British goods shipped overseas last year. Germany ranked second, representing 8.9% of total UK goods exports.
Several consumer and manufacturing sectors recorded sharp declines in trade with the US during the year.
Exports of clothing fell more than 25% to £288.7m, while footwear exports dropped 21.2% to £33.5m. Sales of works of art declined 16.4% to £1.2bn.
The automotive sector — one of the UK’s most significant export industries — also saw a substantial contraction. The value of car exports to the US fell 28.1% to £7.5bn.
Tariffs on British vehicles were partially reduced in a trade agreement reached between London and Washington in May. The deal cut US tariffs on UK car exports from 25% to 10%, but the reduction came after exports had already begun to weaken.
Pharmaceuticals and medicinal products — the UK’s second-largest export category — were exempt from tariffs. However, shipments to the US still fell by 8.4% to £10.2bn over the same period.
Further trade disruption may follow. US Treasury Secretary Scott Bessent has indicated that Washington plans to introduce a global tariff of 15%, which could affect a wider range of imports.
Alex Altmann, partner at Lubbock Fine, said the current trade environment could lead to further declines in exports.
“Tariffs have already reduced the value of British goods exports to the US and with more likely on the way, I would not be surprised to see further falls in trade. This illustrates the need for Britain to cultivate trade with other nations especially by reducing friction on trade with the EU, Britain’s biggest trading partner.”
Altmann argued that the UK could offset some of the pressure from US tariffs by strengthening commercial ties with Europe.
British goods exports to the 27 European Union member states totalled £182.2bn last year, down just 1% compared with 2024. Despite the modest decline, the EU remains by far the UK’s largest trading bloc.
Altmann said closer cooperation with Brussels could help revive trade flows by reducing administrative barriers introduced since the UK left the EU.
“The UK needs to reduce trade barriers with the EU, now that the US is a much more uncertain export market. The Government wants to create closer trade ties with Europe, and the business community would support it on this.”
“There is just too much unnecessary paperwork involved in trading with the EU at the moment. You only have to look at the red tape, border checks and controls that have been placed on exports of food, drink, plants and animal products. These are completely unnecessary barriers to business.”
You must be logged in to post a comment.