On the Dash:
- In June, British exports to the U.S. fell to $5.30 billion, marking the lowest level in more than three years.
- From a quarterly standpoint, exports have fallen more than 25% year-over-year.
- The Office for National Statistics (ONS) reports that the decrease occurred across all commodity categories.
British exports to the United States dropped to their lowest level in three years in June, according to data released by the U.K.’s Office for National Statistics (ONS). The report details the aftermath of President Trump’s tariff policies, revealing sharp monthly and quarterly declines before the U.S.-U.K. trade deal was struck on June 30.
In June, British exports dropped to $5.30 billion, the lowest level since February 2022. This marks a dramatic decline of $0.95 billion from May and was 20% below the 2024 monthly average of $6.66 billion.
From a quarterly perspective, British exports to the United States decreased by over 25% compared to the prior quarter, as British manufacturers rushed to expedite shipments to the U.S. to beat President Trump’s April tariff deadline.
The ONS’s report reveals that there was a marked decrease in all commodity categories. Exports of chemicals, machinery and transport equipment fell by $0.27 billion, including vehicles affected by higher U.S. duties.
President Donald Trump and British Prime Minister Keir Starmer agreed to a trade deal on June 30 that slashed the tariff rates on automobiles and aerospace parts. However, the agreement maintains a 10% blanket tariff rate on other British exports. Steel exports remain excluded from tariff cuts. While the new trade agreement offers a potential path to recovery for British exports, particularly in the automotive and aerospace sectors, the volatility of global trade tensions may continue to create uncertainty in the months ahead.
