UK exports to the US fell to £3.9 billion in June 2025 — the lowest since Feb 2022 — due to US tariffs, ONS data shows. Machinery, transport equipment, and cars hit hardest despite partial trade deal.

UK–US Trade Update — June 2025

London, Aug 14 (Reuters) — British goods exports to the United States plunged to their lowest level in more than three years in June, as fresh U.S. tariffs under President Donald Trump’s trade policy took a toll on UK manufacturers, according to new data from the Office for National Statistics (ONS).

Key Trade Figures

• Exports to US (June 2025): £3.9 billion ($5.3 billion)
• Month-on-Month Change: Down £0.7 billion from May
• Year-on-Year Change: Down ~20% from 2024’s monthly average of £4.9 billion
• Lowest Since: February 2022

Tariff Shock Despite Trade Deal

On June 30, UK Prime Minister Keir Starmer and U.S. President Donald Trump implemented a partial trade agreement aimed at reducing tariffs on cars and aerospace parts.

However, the deal kept a 10% tariff on most exports and excluded steel products, limiting its positive impact.

“The initial tariff blitz in April created a front-loading effect, as many exporters rushed shipments before duties kicked in,” ONS noted.

Sector-Wise Impact

• Machinery & Transport Equipment: Down £0.2 billion in June, with cars particularly affected.
• All Major Commodity Groups: Recorded declines in exports to the US.
• Precious Metals: Volatile but still lower compared to last year.

ONS Survey Insight: One-third of UK exporting firms with 10+ employees reported a direct hit from U.S. tariffs.

Imports from the US on the Rise

• US Goods Imports (June 2025): Up £0.2 billion
• Key Driver: Higher sales of U.S. aircraft to UK buyers.

Quarterly Trade Trend (Q2 2025)

From April to June 2025, UK exports to the US fell over 25%, reflecting the rush shipments ahead of April’s first tariff wave followed by a sharp drop in June.

Market & Currency Context

• GBP/USD trading near 1.358 in June’s first half before tariffs pressure weighed on sentiment.
• $1 = £0.7364 exchange rate at publication time.

Outlook

While the partial trade deal offered some tariff relief, analysts say the UK must secure wider exemptions, particularly for steel and manufacturing goods, to restore export momentum.

Tariff-related uncertainty, combined with potential U.S. secondary trade actions, could weigh on British exporters into Q3 2025.