UK exports to US remain below pre-tariff levels despite improvement
Figures from the Office for National Statistics showed that exports to the US rose by £0.8 billion to £4.7 billion in July.
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.
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.”
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.