U.K. goods exported to the U.S. dropped by GBP2 billion ($2.7 billion) in April, figures published by the Office for National Statistics on Thursday revealed, marking the largest monthly decrease since records began in 1997. The value of Britain’s exports to the U.S. was the lowest since February 2022 at GBP4.1 billion, with the ONS stating that the shift was “likely linked to the implementation of tariffs on goods imported to the United States.” Exports of cars, chemicals, and metals all experienced declines, according to the ONS.
U.S. imports to the U.K. fell by GBP400 million for the month to GBP4.7 billion, returning Washington to a trade surplus in goods with the country for the first time since May 2024. Trade data indicates that U.K. businesses significantly increased their exports to the U.S. at the beginning of 2025 as rumors regarding the introduction of tariffs—eventually confirmed on April 2—circulated.
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Tariff implications for U.K. goods
The primary goods sent by the U.K. to the U.S. encompass automotives, medicines, mechanical generators, scientific instruments, and aircraft. Meanwhile, the U.K. exhibits a strong demand for U.S. oil, in addition to its own pharmaceutical products and aircraft.
The U.K. and U.S. announced the outline of a trade deal at the beginning of May, but the agreement still imposed 10 percent blanket tariffs on British goods sent stateside and has yet to be fully implemented. U.S. President Donald Trump’s universal 25 percent duties on steel and aluminum are set to be reduced to zero for the U.K., while up to 100,000 British cars annually will face a rate of 10 percent instead of 25 percent; however, higher tariffs remain in place until final details of the deal are confirmed.
Overall, the U.K.’s trade deficit in goods increased by GBP4.4 billion to GBP60 billion in the three months to April, while its trade surplus in services decreased by GBP500 million to GBP48.5 billion. This brought the total trade deficit across both goods and services to GBP11.5 billion, up from GBP6.6 billion.
Figures also released by the ONS on Thursday indicated that the U.K. economy contracted by 0.3 percent in April, below the 0.1 percent anticipated by economists polled by Reuters. The U.K.’s dominant services sector was a weak point, contracting by 0.4 percent, while construction output rose by 0.9 percent.
