British goods exports to the United States suffered their sharpest monthly fall on record in April, tumbling by £2 billion from the previous month to just £4 billion, according to figures released by the Office for National Statistics (ONS) and reported by Times UK.
The 33% drop marks the steepest monthly decline in UK-to-US goods trade since records began in 1997. The downturn comes in the wake of new US import tariffs, dubbed “liberation day” duties, announced by President Donald Trump on April 2. The sweeping measures affected more than 120 countries and imposed levies ranging from 10% to 145%, primarily targeting Chinese imports but extending to key UK sectors including automobiles, steel, and chemicals.
According to Times UK, the biggest declines in British exports were seen in cars, machinery, and chemical products. The ONS said the White House’s imposition of a 25% import tariff on British cars, steel, and aluminium was particularly damaging—though some relief followed in May after a partial UK-US trade agreement lowered some of these levies.
Despite the initial blow, a deal between Prime Minister Sir Keir Starmer and President Trump has started to take shape. Last month, the two leaders agreed to cut car import duties to 10% on the first 100,000 British vehicle exports and to eliminate tariffs entirely on UK steel and aluminium. However, this agreement has yet to be fully implemented, and most other UK goods still face at least a 10% tariff when entering the US market.
The collapse in goods trade has pushed the UK’s overall trade deficit to £11.5 billion, its highest level in three years. While exports to the European Union also declined by 4% (or £600 million), services exports—which are not subject to US tariffs—rose by £200 million.
“Come July 9, we may see more clarity,” said Sandra Horsfield, economist at Investec, referencing the 90-day pause before new tariffs become permanent. “But we are by no means convinced this will be the final word.”
Legal uncertainty clouds the future of the tariffs. A recent ruling by the US Court of International Trade challenged President Trump’s authority to impose unilateral levies, although the decision has been appealed and, for now, tariff revenues are still being collected.
Meanwhile, negotiations continue between the US and other major economies. Talks with China have reportedly resulted in a tentative agreement to reduce tariffs to 55% on Chinese goods in exchange for continued access for Chinese students at US universities. EU-US negotiations remain tense, with Trump demanding reductions in non-tariff barriers.
According to Yael Selfin, chief UK economist at KPMG, a “disappointing” outcome in EU-US talks could have “adverse spillover effects on the UK economy,” further complicating Britain’s trade position.
William Bain of the British Chambers of Commerce stressed the urgency of the situation: “The UK-US deal must be implemented as soon as possible on car, steel and aluminium. But we must not stop there—we need to build upon the agreement to reduce tariffs in other goods sectors suffering an economic hit.”
As the clock ticks toward July, uncertainty looms large for UK exporters, many of whom are still reeling from April’s unprecedented blow. The full economic impact of the US tariffs remains unclear—but for now, the damage is already being felt on both sides of the Atlantic.
