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British exports to the US hits a three year low amid Trump’s tariffs – London Business News | London Wallet

Philip Roth by Philip Roth
August 14, 2025
in UK
British exports to the US hits a three year low amid Trump’s tariffs – London Business News | London Wallet
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British exports to the US has fallen to its lowest level in more than three years in June, according to the Office for National Statistics (ONS).

This comes amid the US President Donald Trump’s tariffs war and the sales of British goods fell to £3.9 billion, down by £0.7 billion from May.

This is around 20% lower that the monthly average of £4.9 billion, the ONS added there has been a fall in export of all commodities to the US in June.

Transport equipment including vehicles and machinery took the biggest hit on US tariffs which is down by £0.2 billion, data shows on Thursday.

British Chambers of Commerce, Head of Trade Policy, William Bain, 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.”

Goods exports

UK goods exports declined in June 2025 by 6.1% in volume compared with May.

Goods exports to the EU fell by 2.1% and to non-EU trade partners by 10.2%.

Comparing UK goods exports in Q2 to the US with the same quarter a year ago, sales were £2bn lower on non-seasonally adjusted data. A drop of 13.5% year-on-year by quarter.

Across Q2 2025 as a whole, UK goods exports fell in value terms by 3.7%. Goods exports to the EU rose by 3.6% over that period, but for the rest of the world they fell by 9.9% across a whole range of material manufactured products.

On exports to the EU across the quarter, power generators and ships exports performed strongly.

US tariff changes in Q2

Reciprocal tariffs across most UK goods exports sectors to the US came into effect in early April. Q2 is therefore the first quarter where most UK goods were affected. Steel and aluminium product tariffs at 25% have applied since March.

Tariffs of 10% on automotive vehicles and automotive parts for UK vehicles in the US, and zero tariffs for civil aerospace vehicles and parts came into effect from 30 June 2025. There are also now 50% tariffs for certain copper exports.

Goods imports

The volume of UK goods imports fell by 3.6% in June. This was made up of a 5.7% drop in EU goods imports, and 1.5% fall from the rest of the world.

For Q2 as a whole, total goods imports to the UK rose by 1.6%, in value terms, with imports from the EU 3.1% higher on the quarter and non-EU goods imports flat.

Chemicals and machinery/transport equipment imports from the EU performed strongly in Q2 2025.

Services

In services, UK exports fell by 0.2% in June but across the last quarter experienced strong growth at 2.9%. This was particularly pronounced in professional and advisory and other business services, financial services and travel services.

Services imports rose by 1% during June, but across the quarter as a whole fell slightly by 0.2% with drops in travel services, pensions and insurance imports.

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