The United States remains one of the UK’s most important export markets.

However, changes in trade policy have made selling into the US more challenging and less attractive for many British businesses.

Between April and June, UK goods exports to the US fell by 13.5 per cent, equivalent to around £2 billion, compared with the same period last year.

This is the lowest level recorded in over three years.

Why have UK exports declined?

The recent decline follows the introduction of US import tariffs, which impose a 10 per cent charge on most UK goods and a 25 per cent levy on steel and aluminium.

Although a UK–US trade deal was signed in June, easing tariffs on cars and aerospace components, it did not secure exemptions for steel and aluminium.

As a result, these industries remain especially vulnerable.

What is the impact of US tariffs on UK businesses?

These tariffs make British products more expensive in the US, which can reduce their competitiveness and squeeze profit margins.

Companies that depend on trade across the Atlantic, particularly in manufacturing and engineering, are already seeing orders drop.

Exports of machinery and transport equipment, including cars, fell by £0.2 billion in June, contributing to the one-third of UK exporting businesses with 10 or more employees that reported being affected by US tariffs.

How can you mitigate the impact of tariffs on your trade?

If your business exports to the US, consider taking the following actions to manage the financial impact of the tariffs:

• Review supply chains – Assess whether parts of your production can be located within the US to benefit from lower duties or tariff exemptions.
• Adjust pricing strategies – Factor in the cost of tariffs when setting prices, or explore cost efficiencies in other parts of the business to protect margins.
• Diversify markets – Consider new export opportunities in markets with more favourable trade agreements, such as those in the Asia–Pacific or the Middle East.
• Use currency hedging – Pound–dollar fluctuations can cause further cost pressures, but forward contracts and other hedging tools can help stabilise costs.

Can we expect further changes to UK-US trade policy?

UK ministers are under pressure to negotiate further concessions to secure the outstanding part of the trade deal. However, there is no guarantee of short-term relief.

Even as Government discussions continue, you should take proactive steps now to position your business to withstand the current trading conditions.

If your company is affected by the new tariffs, get in touch for expert advice on international trade.