25 April 2025
If you are covering the latest Office for National Statistics release on UK trade with the United States, please see the following comment from Lindsay James, investment strategist at Quilter:
“With the Chancellor in Washington for crucial discussions on a UK-US trade deal with Treasury Secretary Scott Bessent, newly released ONS analysis offers vital insight into Britain's trading relationship with the United States over the past year. This data highlights the industries most vulnerable to potential disruptions from tariffs, particularly under the policies of the previous administration.
“The UK maintains a significant services trade surplus with the US, exporting more than double the volume of services it imports. The US represents 27% of all British services exports, underscoring the importance of financial services, consulting, and public relations to our economy. Protecting these key sectors must remain a priority, as our ability to counter tariffs is limited without risking damage to this vital export market.
“On the import side, nearly half of the services purchased from the US fall under 'other business services,' while travel constitutes the second-largest category. With tourism an important US export, should travellers opt for alternative destinations, the US economy could face vulnerabilities.
“In goods trade, the US accounted for 16.2% of British goods exports last year, solidifying its position as our largest export market for goods. However, the EU remains an even larger trading partner, accounting for 48% of goods exports – a relationship that is critical to our overall trade balance.
“Luxury cars, machinery, and transport equipment dominate our exports to the US, with power generation products such as turbines and combustion engines contributing £4.6bn, nearly 8% of total goods exports. Investors are closely monitoring these industries, as they represent areas of potential exposure.
“This data serves as a timely reminder of the importance of navigating trade negotiations with precision and pragmatism. We must strike the right balance to protect both our economic interests and the industries that drive prosperity for the UK.”
