Economy March 16, 2026

UK Goods Shipments to US Slide 15.5% in January as Tariff Measures Bite

January exports to the United States fall to £4.2bn amid machinery and vehicles weakness; EU trade offers limited offset without reduced red tape

By Avery Klein
UK Goods Shipments to US Slide 15.5% in January as Tariff Measures Bite

British goods exports to the United States fell 15.5% in January to £4.2 billion, marking a third monthly decline and reflecting a £400 million fall in machinery and transport equipment exports, notably cars. Annual exports to the US declined 10.3% to £59.2 billion for the year to December 31, 2025. Trade tensions and imminent US tariff plans are weighing on flows, while lower-friction trade with the EU is cited as a potential partial offset.

Key Points

  • UK goods exports to the US fell 15.5% in January to £4.2 billion, the third consecutive monthly decline.
  • Machinery and transport equipment exports declined by £400 million in January, with cars particularly affected.
  • For the year ending December 31, 2025, UK goods exports to the US dropped 10.3% to £59.2 billion; the US made up 15.6% of UK goods exports last year.

British exports of goods to the United States dropped by 15.5% in January to £4.2 billion, the third month in a row that shipments to the US have fallen, data published Friday by business advisers Lubbock Fine show.

The January figure was an 11.3% decline from December 2025 and compares with £4.9 billion recorded in January 2025. The reduction in exports was concentrated in machinery and transport equipment, which fell by £400 million, with cars singled out as a notable component. Most other goods categories also recorded decreases in January.

The downward trend follows a series of measures introduced since President Donald Trump’s return to office last year that have erected tariffs on various goods entering the US. For the year ending December 31, 2025, UK goods exports to the US declined 10.3% to £59.2 billion - the first annual fall since the pandemic.

Even after a trade agreement reached with the US government in May, exporters face additional headwinds: US Treasury Secretary Scott Bassent has said Washington will impose a global 15% tariff imminently, a development Lubbock Fine identified as adding pressure to UK exports.

Over the last year the US accounted for 15.6% of the UK’s total goods exports of £379.8 billion. By contrast, exports to the 27 member states of the European Union amounted to £182.2 billion in 2025, a 1% decline from 2024.

Alex Altmann, a partner at Lubbock Fine, argued that easing trade frictions with the EU could help offset some of the lost volume to the US. He identified import and export declarations, documentary requirements and inspection procedures as specific administrative hurdles that, if reduced, could support trade growth with European partners. Altmann also pointed to border checks and controls on food, drink, plants and animal products as particular impediments to doing business with the EU.

The data highlight acute near-term pressures on UK goods exports tied to tariff policy and point to the potential for administrative reforms with the EU to moderate those pressures. The pattern of monthly declines and the yearly contraction to the US underline an elevated degree of uncertainty for exporters reliant on the American market.

Risks

  • New and existing US tariff measures - including an imminent global 15% tariff cited by US Treasury Secretary Scott Bassent - pose downside risk to UK goods exports, especially machinery and vehicles (affecting manufacturing and auto supply chains).
  • Administrative and inspection requirements at EU borders (import/export declarations, documentation, controls on food, drink, plants and animal products) could continue to impede trade with the EU unless reduced, limiting offsetting export growth for UK goods exporters (impacting agri-food and logistics sectors).
  • Ongoing month-to-month declines in exports to the US create near-term uncertainty for sectors dependent on US demand, particularly machinery and transport equipment manufacturers and exporters of cars.

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