UK exports to U.S. plunge by 25% after Trump's 'liberation day' tariffs blitz

U.K. exports to the United States experienced a significant downturn, plunging approximately 25% following the introduction of President Donald Trump's "liberation day" tariffs in April last year. Official data released by the Office for National Statistics (ONS) on Friday, May 1, 2026, indicates that goods exports to the U.S., excluding precious metals, fell by £1.5 billion, or 24.7%, after these tariffs were implemented. This dramatic shift has led to the U.K. running a trade deficit with its largest trading partner for three consecutive months at the start of 2026, as U.K. goods exports remained low while imports from the U.S. increased.

The "liberation day" tariffs, unveiled in April 2025, marked a pivotal change in transatlantic trade, ending the previous zero-tariff environment for exporters on both sides. The terms of the trade deal, which made the U.K. the first country to secure an agreement with the Trump administration post-tariffs, included a 10% blanket tariff on goods imported to the United States from the U.K. This policy specifically slapped new duties onto Scotch whisky and other spirits sent to America from Britain. Beyond spirits, car exports from the U.K. to the States have also seen a decline, now languishing below pre-tariff levels in the 12 months since April 2025.

In a recent development this week, President Trump announced the removal of all tariffs on Scotch whisky "in honor" of King Charles III and Queen Camilla, following their state visit. While this is welcome news for an industry that employs around 40,000 people in Scotland and accounted for 23% of all Scottish goods exports in 2025, experts caution that this alone will not be sufficient to repair the overall British trade deficit. Samuel Edwards, head of client portfolio management at Ebury, highlighted the broader challenges faced by U.K. exporters, noting they are experiencing a "triple squeeze" of higher trading costs from tariffs, raised employment costs and taxes, and input price pressures, all of which erode margins and hinder international competitiveness.

For importers, customs brokers, and trade compliance officers, these developments underscore the dynamic and often unpredictable nature of international trade policy. The shift from a zero-tariff environment to a 10% blanket tariff, followed by the specific removal of duties on Scotch whisky, demonstrates the critical need for continuous monitoring of tariff schedules and trade agreements. Importers must remain vigilant, ensuring accurate classification and valuation of goods, and staying informed about any new announcements or changes in trade policy that could impact their supply chains and landed costs. The fluctuating landscape necessitates robust compliance programs to adapt quickly to evolving trade regulations and mitigate potential risks.