U.K. exports to the United States fell sharply by approximately 25% following the introduction of President Donald Trump's 'liberation day' tariffs in April of the previous year, according to official data from the Office for National Statistics (ONS) [1]. Specifically, goods exports to the U.S., excluding precious metals, declined by £1.5 billion, or 24.7%, after the tariffs were implemented and have remained subdued since then [1]. Car exports from the U.K. to the U.S. have also dropped and continue to lag below pre-tariff levels over the 12 months since April 2025 [1].
While U.K. exports have stayed low, imports of goods from the U.S. increased at the start of 2026, resulting in the U.K. running a trade deficit with its largest trading partner for three consecutive months [1]. The tariffs, which included a 10% blanket duty on goods imported to the United States, ended the previous zero-tariff trade environment and imposed new duties on products such as Scotch whisky and other spirits exported from Britain [1].
In a recent development, President Trump announced the removal of all tariffs on Scotch whisky 'in honor' of King Charles III and Queen Camilla following their state visit [1]. Despite the Scotch whisky industry employing around 40,000 people in Scotland and accounting for 23% of all Scottish goods exports in 2025, analysts suggest that this measure alone will not be sufficient to reverse the overall British trade deficit with the U.S. [1].
Samuel Edwards, head of client portfolio management at Ebury, commented that the U.S. remains the U.K.'s largest export market and that the scale of the downturn is likely to have consequences for overall U.K. growth. He noted that exporters are facing a 'triple squeeze' of higher trading costs from tariffs, increased employment costs and taxes, and input price pressures, all of which are eroding margins and making it harder for U.K. businesses to compete internationally [1].
CONCLUSION
The imposition of U.S. tariffs has led to a significant decline in U.K. exports to its largest trading partner, resulting in a persistent trade deficit. While the removal of tariffs on Scotch whisky offers some relief, broader challenges remain for U.K. exporters, with analysts warning of negative implications for U.K. economic growth.