economy
UK exports to U.S. plunge by 25% after Trump's 'liberation day' tariffs blitz
The U.K. is now running a trade deficit with its largest trading partner.
TL;DR
- U.K. goods exports to the U.S. fell by 24.7% (£1.5 billion) after the introduction of tariffs.
- Car exports from the U.K. to the U.S. have also declined and remain below pre-tariff levels.
- U.K. imports of goods increased, leading to a trade deficit with the U.S. for three months.
- The U.K. secured a trade deal with the Trump administration that included a 10% blanket tariff on U.S. imports.
- This deal ended the zero-tariff trade environment for some goods, including Scotch whisky.
- President Trump announced the removal of all tariffs on Scotch whisky in honor of King Charles III and Queen Camilla.
- The Scotch whisky industry employs 40,000 people and accounts for 23% of Scottish goods exports.
- Experts believe the tariff removal on Scotch whisky will not be enough to repair the overall British deficit.
- Exporters are facing a 'triple squeeze' of higher trading costs, increased employment costs and taxes, and input price pressures.