UK exports to the US fell to a three-year low in June 2025, showing that tariffs and trade rules are still hitting British businesses hard.
Official figures released on August 14 put the value of exports at £3.9 billion ($5.3 billion), down £0.7 billion from May and about 20% below the average monthly exports in 2024. It’s the lowest level since February 2022.
The drop came even though a UK-US trade deal went into effect at the end of June.
The deal, signed by Prime Minister Keir Starmer and former US President Donald Trump, was meant to reduce tariffs on cars and aerospace goods, two key UK export sectors. But most other goods still face a 10% tariff, and steel hasn’t benefited from any reductions yet.
The Office for National Statistics (ONS) said UK exports to the US fell across several key sectors.
Machinery and transport equipment, including cars, were hit particularly hard, dropping £0.2 billion, largely because of higher initial US tariffs.
The tariffs have caused real strain for British exporters, an ONS survey found that about a third of UK exporting firms with 10 or more employees said they were negatively affected.
At the same time, imports from the US actually rose by £0.2 billion in June, mainly driven by higher aircraft imports.
This imbalance shows that trade disruptions are still a problem and that the new UK-US trade deal hasn’t fully ironed out the flow of goods yet.
Trade deal relief, but limited
Looking at the April to June 2025 quarter, UK exports to the US dropped by more than 25%. Many British manufacturers appear to have rushed shipments before Trump’s tariffs came into effect in April, which likely contributed to the sharp decline once the new duties were enforced.
The UK-US trade deal, signed on May 8 and ratified on June 16, gave some relief to exporters struggling with tariffs.
Under the deal, car export tariffs dropped from 27.5% to 10% for up to 100,000 UK cars a year, and tariffs on UK aluminium and steel were lifted. Many other goods, however, still face a 10% tariff.
The agreement also opened up certain quotas for UK beef and pharmaceuticals, trying to encourage trade while keeping British food standards intact.
Even with the trade deal, UK exporters are still in a tough spot. The US scrapped the rule that let small shipments dodge tariffs on July 30, 2025, which means even low-value deliveries from the UK will start facing duties from August 29.
That adds more costs on top of an already tricky situation.
Analysts and business groups say the US’s heavy-handed tariff approach is rattling global supply chains and shows the bigger geopolitical tensions at play.
The trade deal has helped a bit, but it hasn’t turned around the drop in UK exports since the tariffs hit. Companies are still dealing with unpredictable tariffs and confusing customs rules, making it hard to plan ahead.
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