After Trump initiated a global trade war, the UK's merchandise exports to the US in April saw the largest monthly decline since records began in 1997.
The latest data released by the UK's Office for National Statistics (ONS) showed that from March, exports of goods to the US, including precious metals, fell by £2 billion (approximately $2.7 billion) to £4.1 billion, the lowest level since February 2022. Meanwhile, imports of goods from the US dropped by £400 million to £4.7 billion. The UK's statistics office stated, "This may be related to the US imposing tariffs on all imported goods."
This can be attributed to Trump's announcement on April 2, "Liberation Day," of a 10% base tariff on all UK goods, with higher tariffs of 25% on steel, aluminum, cars, and auto parts exported to the US.
Although a framework agreement was reached between the UK and the US on May 8 to reduce car tariffs and eliminate aluminum and steel tariffs, the specific agreement has yet to be fully finalized.
Liz McKeown, Director of Economic Statistics at the ONS, said, "After four consecutive months of growth, April saw the largest monthly decline in merchandise exports to the US on record, with most types of goods experiencing a decline following the recent implementation of tariffs."
The ONS also noted that most major commodities exported from the UK to the US declined in April: exports of machinery and transport equipment fell by £800 million due to a decline in car shipments, and chemical exports decreased by £300 million.
In addition, the UK's economic output also contracted significantly in April.
ONS data showed that the UK's gross domestic product (GDP) contracted by 0.3% MoM in April, worse than the expected decline of 0.1%, and marking the largest monthly decline since October 2023.
Among them, the services sector, which accounts for the largest share of the economy, contracted by 0.4%, while manufacturing declined by 0.9%.