Tuesday, 02 January 2024 12:17 GMT

Trump Tariffs Cost Britain USD2B in U.S. Trade


(MENAFN) Britain's trade relationship with the United States has taken a measurable and sustained hit since Washington introduced sweeping import tariffs, with goods exports suffering a sharp decline that has yet to fully recover, official data published Friday revealed.

Figures from the Office for National Statistics show that British goods exports to the United States, excluding precious metals, plunged by £1.5 billion — equivalent to $2.03 billion — or 24.7 percent in April 2025, the month the tariffs took effect, and have remained suppressed ever since.

The automotive sector has been among the hardest hit. British car exports to the United States dropped following the introduction of the levies and have not recovered to pre-tariff levels, the ONS noted — a particular concern for an industry that counts the American market as one of its most critical.

The trade imbalance has also shifted in a telling direction. Britain's goods imports from the United States, excluding precious metals, have outpaced its goods exports to Washington for three consecutive months running since December 2025 — an inversion that reflects the asymmetric pressure the tariffs have placed on British exporters.

Despite the strain, the United States retains its position as Britain's largest goods export destination and third-largest source of goods imports, underlining how deeply intertwined the two economies remain even amid the trade friction.

The tariff regime traces back to Trump's return to the White House in January 2025. Among the measures introduced was a blanket 10 percent tariff on most British imports, announced in April 2025, according to the ONS.

A partial reprieve came the following month. In May 2025, the two governments reached a bilateral agreement that included a reduced tariff rate on a specified volume of British car exports and the removal of duties on British steel and aluminium — contingent on meeting supply chain security requirements — though broad tariff pressure on British goods broadly remains in place.

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