UK exports to US remain below pre-tariff levels despite improvement

UK exports to the US improved again last month but remained below pre-tariff levels as firms continue to recover from disruption to trade.

Figures from the Office for National Statistics (ONS) showed that exports to the US rose by £0.8 billion to £4.7 billion in July.

This marked the highest level since March, before President Trump’s administration announced its major tariffs programme.

Exports remained significantly below the £6.1 billion peak of exports prior to the new tariff rules after firms shipped goods to the US in large numbers in preparation for the shake-up.

Meanwhile, imports to the UK from the US slipped by £0.5 billion to £4.6 billion, representing the lowest level since November last year.

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Demand

Total good imports into the UK rose by £2.7 billion, or 5.4%, of the month, with stronger demand for products from both EU and non-EU countries.

The value of exports from the UK overseas increased by £1.9 billion, or 6.6%, for the month.

The figures also showed that the UK’s trade deficit for goods and services widened by £0.4 billion to £10.4 billion in the three months to July, as imports grew by more than exports.

Analysts said it was partly driven by a larger-than-expected deficit in July.

Elliott Jordan-Doak, senior UK economist at Pantheon Macroeconomics, said: “The underlying trade balance fell erratically in July, but it will remain weak.

“The headline trade deficit widened in July, driven by a sharp deterioration in the underlying trade balance.”

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'Weak'

The ONS reported that there was zero growth in gross domestic product (GDP) month on month in July, slowing from 0.4% growth in June.

Kathleen Brooks at XTB said the “weak” monthly trade data “weighed” on GDP during the month.