Key insights
- UK exports to the US fell 15.5% in January due to tariff pressures, primarily impacting machinery and transport equipment. A potential global 15% tariff by the US Treasury Secretary adds further pressure. Reduced trade barriers with the EU are suggested to offset declining US exports. This could have a slight negative impact on US equities as it signals potential trade tensions and economic slowdown.
Investing.com -- British goods exports to the United States declined 15.5% in January to £4.2 billion, marking the third consecutive monthly decrease, according to data published Friday by business advisers Lubbock Fine.
The January figure represents an 11.3% drop from December 2025 and compares to £4.9 billion in January 2025. The decline was primarily driven by a £400 million reduction in machinery and transport equipment exports, particularly cars, with most other goods categories also experiencing decreases.
The drop follows President Donald Trump’s introduction of tariffs on various goods entering the US since his return to office last year. UK goods exports to the US fell 10.3% to £59.2 billion for the year ending December 31, 2025, the first annual decline since the pandemic.
Despite a trade deal agreed with the US government in May, UK exports face additional pressure as US Treasury Secretary Scott Bassent has stated Washington will impose a global 15% tariff imminently.
The US accounted for 15.6% of the UK’s £379.8 billion in goods exports last year. Exports to the 27 European Union member states totalled £182.2 billion in 2025, down 1% from 2024.
Alex Altmann, partner at Lubbock Fine, said reducing trade barriers with the EU could help offset declining US exports. He pointed to import and export declarations, document requirements, and inspection requirements as areas where reduced red tape could boost trade growth.
Altmann highlighted border checks and controls on food, drink, plants and animal products as barriers to business with the EU.