UK Exports Plummet as US Tariffs Squeeze British Trade Amid Economic Uncertainty in 2025

28/11/2025 3 min
UK Exports Plummet as US Tariffs Squeeze British Trade Amid Economic Uncertainty in 2025

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Episode Synopsis

Welcome back to United Kingdom Tariff News and Tracker. I'm your host, and today we're breaking down how American tariff policy is reshaping the British economy in real time.The numbers tell a stark story. UK exports to the United States have collapsed to their lowest levels in nearly four years. In September 2025, British goods shipments to America plummeted 11.4 percent, marking the weakest performance since January 2022. This isn't coincidence. US tariff policy is actively dampening demand for UK products, and British businesses are feeling the squeeze.Meanwhile, across the Atlantic, President Trump's new tariff regime has pushed the average effective US tariff rate to approximately 16 percent, a dramatic spike from pre-Trump levels. This elevated trade barrier is creating uncertainty that ripples through global supply chains, and the United Kingdom isn't insulated from the fallout.Here's what's happening on the ground in Britain. The UK trade deficit in goods and services widened significantly in the third quarter of 2025, expanding by 2.8 billion pounds. More concerning, the goods trade deficit alone ballooned by 3 billion pounds to 59.6 billion pounds. When American tariffs rise, they don't just hurt US consumers paying higher prices. They hurt British exporters who lose market access and momentum.The broader economic picture is equally sobering. The Office for Budget Responsibility has downgraded its growth forecasts for the UK, cutting 2026 growth estimates from 1.9 percent down to 1.4 percent. Lower productivity growth is the primary culprit, but trade disruption plays a significant role in this slowdown.On the domestic front, the UK government announced in the Autumn Budget 2025 that it will remove customs duty relief on low value imports below 135 pounds by March 2029 at the latest. This policy shift aims to level the playing field but will increase costs for businesses relying on affordable imported components and goods.The unemployment rate has now reached a four-year high at 5 percent as businesses contract in response to uncertainty. Young people are being hit particularly hard, with unemployment for those aged 16 to 24 climbing to 15.3 percent, a five-year peak.What does this mean for listeners? If you're in import-export, manufacturing, or retail, tariff volatility will remain a central business concern through 2025 and beyond. Track these developments closely because policy changes on both sides of the Atlantic will directly impact your bottom line.Thank you for tuning in to United Kingdom Tariff News and Tracker. Don't forget to subscribe for the latest updates on how trade policy shapes your business. This has been a quiet please production, for more check out quiet please dot ai.For more check out https://www.quietperiodplease.com/Avoid ths tariff fee's and check out these deals https://amzn.to/4iaM94QThis content was created in partnership and with the help of Artificial Intelligence AI

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