British Exports to the US – A Drop in the Ocean of Trade
June 2025: The Dark Side of the Export Graph
According to the Office for National Statistics (ONS),
British goods shipments to the United States dropped to £3.9 billion in June.
That’s a £0.7 billion slump from May and roughly 20 % below the monthly average.
The figure sits at the lowest level of the past three years – not the kind of headline that makes you cheer, but the kind that makes policymakers sit up.
Why the Drop? – Tariffs, Trucks, and Trump
- All‑Commodity Decline: Every sector from tin to tech saw a hit; it’s no “one‑off” glitch.
- Transport Equipment Tumbles: Vehicles, machinery and the like took the biggest blow, slipping down by £0.2 billion.
- The Trump Tariff Shock: The “reciprocal” tariffs now add an extra 10 % to most UK sectors – from cheeky drinks to slick chemicals.
Figure‑Right: What the Numbers Say
William Bain, Head of Trade Policy at the British Chambers of Commerce, gave us a neat summary:
“Export to the US are feeling the pinch. Q2 2025 goods exports are 13.5 % lower compared to last year,”
Yet, not all tales are tragic – was it too harsh? Bain points out:
- Services Shine: The service arm of the UK’s trade battery is buzzing, keeping the inflation in its boarding party.
- EU vs. US: Almost half our goods go the EU route, and those shipments braved the tariff storm better than the US side.
- Jekyll & Hyde on Goods: One side is down, the other is up – a paradox that keeps traders on their toes.
Who Gets the Credit?
While the best deal is yet to be signed, Bain urged the UK to implement the full trade deal with the US.
He added that the agreement should be a springboard for further tariff reform, especially in sectors where competition is shy.
Policy Roadmap – Quick Takeaway
- Accelerate the US‑UK Deal: Good manufacturing, especially steel and aluminium, will benefit.
- Leverage Tariff Negotiations: Use the deal as a platform for revising tariffs where production competition is sparse.
- Focus on Growth: Prioritize the parts of the Trade Strategy that can boost goods export sales swiftly while keeping the services boom alive.
In short, the UK export ship has hit a rough patch, but with proper steering and a bit of diplomatic grit, it can sail back into calmer waters. And hey, if the US keeps coming up with a fresh batch of tariffs, we’ll just need to get back to the grind – or maybe add some more humour to the headlines!
Goods exports
UK Goodie Trade Takes a Squeeze in June 2025
Picture this: the UK’s goods export truck slid 6.1% back in volume compared to May. That’s a clear sign the wheels aren’t spinning as fast as usual.
Export Flash‑Points
- EU trade dipped by 2.1% – a soft wobble that didn’t quite knock the whole continent off balance.
- Non‑EU friends saw a sharper cut of 10.2% – a bigger pothole on the road.
Quarterly Rollercoaster vs. Last Year
When the UK stalked its US shelves in Q2, it faced a stark £2 bn loss on the non‑seasonally adjusted bill. That’s a 13.5% slide when we look at the same period from last year.
Full‑Quarter Snapshot 2025 Q2
All in all, exports trailed by 3.7% in value. Yet, there was a sweet spot: exports to the EU rose by 3.6%, turning the continent into a little trading oasis.
Beyond Wants, Beyond All the Thing‑S—The Outliers
Over the quarter, the UK had a starring role in exporting power generators and ships to the EU – those goodie boxes pulled through like seasoned sailors on a smooth voyage.
Meanwhile, across the rest of the globe, the UK’s material manufactured products slid a hefty 9.9% – as if the world had poured a massive slush into the trade floor.
US tariff changes in Q2
Reciprocal Tariffs Smash UK Exports to the US
Picture this: early April rolls in like a surprise party, but instead of cake, the UK gets a volley of new tariffs on its goods destined for the US. Now, Q2 is the first quarter where most of those goods hit the walls.
- Steel & Aluminium – 25% tariffs have been in place since March, turning Britain’s mighty beams into pricey imports.
- Automotive Vehicles & Parts – A 10% tax slams onto UK cars hitting American streets since June 30, 2025. Think of it as a speeding ticket for your global trade.
- Civil Aerospace – Good news: zero tariffs on aircraft and components, keeping the skies clear of extra costs.
- Copper Exports – Some copper shipments now carry a hefty 50% tariff. Investors might wish they had guessed that earlier.
So while the steel giants are feeling the heat, cars are politely reminded that budgets matter, airplanes stay free‑flying, and copper hits a surprisingly steep wall. Keep your eyes on the road, and who knows what the next trade round will bring?
Goods imports
UK Imports Take a Belly-aching Dip in June
Buyers in Britain found themselves kicking a missing bag of groceries in June—imports slid 3.6 % overall. The fall hit hardest on European roads and the middle‑earth, bringing in a 5.7 % dip from the EU and a modest 1.5 % drop from the rest of the world.
Quarter‑over‑Quarter, Things Are Picking Up
Despite the June slump, the second quarter finished on a higher note: total imports bounced up 1.6 % in terms of value. That’s good news for the currency markets and a faint sigh of relief for manufacturers.
Key Drivers of the Import Rally
- EU goods: +3.1 % for the quarter.
- Non‑EU goods: steady—no change at all.
EU Shines in the Chemistry & Machinery Arena
Two exciting sectors—chemicals and machinery/transport equipment—stood out. The EU’s share of these items made a confident comeback in Q2 2025, giving the British trade balance a sharp lift.
What This Means for the UK
Thanks to the surge in EU chemicals and machinery, the UK is seeing a healthier import mix, and that bodes well for industrial suppliers and tech firms alike.
Services
UK Services Trade Snapshot – June vs. the Last Quarter
Exports Snapshot
- June exports: slipped 0.2 %
- Quarterly big‑wig growth: surged 2.9 %
- Key winners: Professional & advisory, Business services, Financial services, and Travel services
Imports Snapshot
- June imports: rose 1 %
- Quarterly catch‑up: fell 0.2 %
- Major drops: Travel services, Pensions, and Insurance imports
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