Tariffs have already impacted UK exports to the US, with more pressure to come

Investing.com - According to trade data analysis by business consultants and chartered accountants Lubbock Fine, after the U.S. imposed tariffs, the value of UK exports to the U.S. decreased by 10.3% to £59.2 billion last year.

Since the pandemic, UK exports to the U.S. have declined for the first time. The U.S. remains the UK’s largest single trading partner, but new trade barriers have emerged. Since returning to the White House last year, President Trump has imposed tariffs on a range of imported goods.

Most sectors saw a decline in trade with the U.S… Clothing exports fell over 25% to £288.7 million. Footwear dropped 21.2% to £33.5 million, while art sales declined 16.4% to £1.2 billion.

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Although the UK government reached a trade agreement with Washington in May, reducing tariffs on UK cars from 25% to 10%, the value of UK car exports to the U.S. still fell 28.1% to £7.5 billion. Cars are one of the UK’s key export sectors.

UK exports will face further tariff impacts, as U.S. Treasury Secretary Scott Bessent stated that Washington will soon implement a 15% global tariff.

Lubbock Fine partner Alex Altman said, “Tariffs have already reduced the value of UK exports to the U.S., and with more tariffs potentially on the way, I wouldn’t be surprised if trade declines further.”

Of the £379.8 billion worth of goods the UK exported last year, the U.S. accounted for 15.6%, while the second-largest market, Germany, accounted for 8.9%.

Last year, UK exports to the 27 EU member states totaled £182.2 billion, a 1% decrease from 2024. Altman said that if the government collaborates with Brussels to reduce red tape, such as import/export declarations, documentation requirements, and inspections, it could boost trade growth.

Pharmaceuticals and medical products are the UK’s second-largest export sector, with goods sent to the U.S. valued at £10.2 billion, down 8.4%, despite this sector remaining tariff-free.

Last year, President Trump implemented a series of tariffs, setting a baseline tariff rate of 10% on UK goods exported to the U.S… For certain sectors, like aluminum and steel, tariffs reached as high as 50%. Although the trade agreement reached in May agreed to lower tariffs on several sectors, the deal is not legally binding.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.