UK exports to the US shot up just before ‘Liberation Day’, says Parcelhero
The international delivery expert Parcelhero says that in the countdown to the imposition of new tariffs, Britain’s exports to the US reached their highest levels since the end of 2022.
All eyes might now be on the UK’s new agreement with the EU, but surprising new figures reveal Britain’s exports to the USA have also been on the rise. The latest UK trade bulletin from the government’s Office for National Statistics (ONS) reveal UK trade with the US soared in the run-up to the long-threatened imposition of new tariffs on goods arriving in America.
Britain’s goods exports to the US rose by £100m in March alone, ahead of President Trump’s so-called ‘Liberation Day’ on 2 April. The long-heralded event imposed a blanket 10% on most imports into the US from the UK, with even steeper tariffs announced on specific products such as cars.
Parcelhero’s head of consumer research, David Jinks MILT, says: ‘March’s rise in exports to the US may simply be the result of an eleventh-hour push to beat the new tariffs but it certainly shows there is still plenty of business to be done there. If we don’t look at the EU as a single trading block, the US remains Britain’s largest export market. Despite any uptick in EU trade that may happen as a result of this week’s EU-UK trade agreement, the US is still a vital market.
‘UK exports to the US, including precious metals, not only rose by £0.1bn in March but they also increased by £2.4bn during the first quarter of 2025 (January-March) as British businesses pushed through shipments to beat Trump’s tariffs.
‘Our analysis of the latest government figures reveals that UK exports to the USA rose from £15.1bn in Q4 2024 to £17.5bn in Q1 2025, a sizeable 16% rise. How much of this jump was due to a rush to beat tariffs and how much indicates longer-term opportunities for UK-US trade is open for debate. The ONS comments cautiously: “As this release covers trade up to March 2025, there will be no direct impact of tariffs on this data. However, this pattern of increasing exports could be a sign of changing trader behaviour ahead of tariff introduction.”
‘One specific increase in UK exports to the USA that was likely linked directly to the prospect of new tariffs was a rise in exports of machinery and transport equipment generally during March. The ONS states this was specifically linked to increased exports of cars to the United States.
‘It had already been widely trailed that car imports into the US were very likely to be hit by new tariffs and, in the event, UK car exports to the US were initially hit with a whopping 25% tariff. As a result, companies such as Jaguar Land-Rover announced that they would actually suspend exports to the US while they considered their strategy.
‘Of course, since 2 April’s “Liberation Day” the UK successfully negotiated a new trade deal with the US, which was unveiled on 8 May. As a result of this agreement, UK-manufactured cars now face a reduced 10% tariff (up to 100,000 cars) and tariffs on UK aluminium and steel exports have been removed. However, that 10% blanket tariff remains on all goods valued at over the $800 (around £600) US de minimis limit.
‘Even more encouragingly, it also looks like this rise in UK-US exports hasn’t come at the expense of Britain’s trade with the EU. The value of the UK’s EU exports increased by £0.4bn (1.1%) in Q1 2025, including £0.2bn (1.6%) in March alone. So, in terms of selling to other markets in March, UK traders didn’t take their eyes off the ball despite Trump’s tariff shenanigans. This week’s EU deal is likely to promote further growth. In fact, the Government claims the overall package will help make food cheaper, reduce red tape, ease access to the EU market and add nearly £9bn to the UK economy by 2040.
‘Finally, looking beyond both the USA and the EU, there was even more encouraging news about the first months of 2025 in this ONS report. The UK’s total export of goods to all nations increased by £6.3bn (7.3%) in Q1 2025, a good overall result.
‘Of course, whatever the outcome of the still-ongoing trade negotiations with the US in particular, we are inevitably looking at a period of volatility and changes to US shipments.