UK Trade in 2025
UK trade in 2025 faced notable challenges, with global economic uncertainty, rising costs, and new trade policies shaping performance. A key event was the US imposing tariffs in April, which sharply reduced UK exports. Goods exports fell overall, while imports remained stable, reflecting demand shifts and external dependencies.
Despite goods trade pressures, the UK’s services sector remained strong and continued to support the economy. However, the overall trade deficit widened, driven by higher imports. This report explores monthly and quarterly trade trends, key commodities, and the impact of global developments on UK trade flows.
UK Trade Statistics 2025
| Indicator | Value | Change | Notes |
|---|---|---|---|
| Goods Exports (Apr 2025) | £28.4 billion | -£2.7 billion (-8.8%) | Decrease to both EU and non-EU |
| Goods Imports (Apr 2025) | £50.0 billion | £0.0 billion (0.0%) | Stable, offsetting EU rise and non-EU fall |
| Goods and Services Trade Deficit | £11.5 billion | +£4.9 billion | Driven by rising imports |
| Goods Trade Deficit | £60.0 billion | +£4.4 billion | Imports rose more than exports |
| Services Trade Surplus | £48.5 billion | -£0.5 billion | Narrowed from previous period |
The UK’s overall trade landscape in April 2025 exhibited a notable shift, with goods exports falling by £2.7 billion or 8.8%—a decline largely driven by weakened demand in key non-EU markets, particularly the United States. The stagnation in import value concealed an underlying shift: rising EU imports were neutralized by falling non-EU imports. This suggests a growing reliance on the EU for goods sourcing, potentially reflecting shorter supply chains or improved EU-UK trade resilience. A concerning development is the widening trade in goods deficit to £60.0 billion and the shrinkage of the services surplus to £48.5 billion, both of which contributed to a ballooning total trade deficit of £11.5 billion in the three months leading to April.
These shifts point to macroeconomic vulnerabilities in the UK’s trade profile. Tariff disruptions, global inflationary headwinds, and volatile commodity markets are undermining export competitiveness, especially in manufacturing and high-value-added sectors. Simultaneously, import demand remains firm, likely driven by consumer and industrial consumption that hasn’t abated post-pandemic. The narrowing services surplus is particularly noteworthy; the UK traditionally leans on this to offset goods deficits. If this trend persists, it could strain the current account balance and provoke policy reassessment concerning trade diversification and industrial strategy.
UK’s Top Imported Goods in 2025
| Commodity | Import Value (£m) | Share of Imports | 5-Year Change |
|---|---|---|---|
| Cars | ~£40,000 | 29% | +35% |
| Refined Oil | ~£30,000 | 21% | +28% |
| Crude Oil | ~£25,000 | 18% | +28% |
| Medicinal & Pharmaceutical Products | ~£20,000 | 14% | +10% |
| Mechanical Power Generators (Intermediate) | ~£15,000 | 10% | +26% |
The UK’s import basket in 2024 remained heavily concentrated in energy, automotive, and healthcare-related goods. Cars topped the list at around £40 billion, making up 29% of total imports and showing a strong 35% rise over the last five years. This growth likely reflects rising consumer demand for vehicles, including electric vehicles, supported by policy-driven transitions to greener transport. Refined oil and crude oil followed closely, together comprising nearly 40% of top imports, which indicates a continued reliance on fossil fuels despite national decarbonization goals.
Pharmaceutical products and mechanical power generators also featured prominently, highlighting the country’s reliance on advanced manufacturing and healthcare goods. Imports of medicinal and pharmaceutical products rose by 10%, likely due to ongoing NHS procurement and public health priorities. The 26% growth in mechanical power generators reflects industrial and infrastructure demand—possibly linked to renewable energy installations, telecom upgrades, and industrial automation. The import landscape reaffirms structural dependencies on sectors vital to both consumer living standards and national infrastructure.
UK’s Top Exported Goods in 2025
| Commodity | Export Value (£m) | Share of Exports | 5-Year Change |
|---|---|---|---|
| Cars | ~£35,000 | High | -1% |
| Mechanical Power Generators (Intermediate) | ~£25,000 | Moderate | +26% |
| Medicinal & Pharmaceutical Products | ~£20,000 | Moderate | +6% |
| Crude Oil | ~£15,000 | Lower | -26% |
| Aircraft | ~£10,000 | Lower | Not stated |
UK export performance in 2024 was driven primarily by high-value manufactured goods, though with mixed momentum. Cars continued to be the leading export category, with a value close to £35 billion. However, a 1% decline over five years suggests maturity in major markets and potential headwinds from protectionist trade policies, such as tariffs introduced by the US in early 2025. In contrast, mechanical power generators saw a robust 26% export growth, possibly due to rising demand from emerging markets and industrializing economies for energy infrastructure components.
Exports of pharmaceuticals remained strong, rising by 6% as the UK maintained its global competitiveness in branded drugs and medical research. Crude oil exports declined sharply by 26%, reflecting either falling demand or reduced UK production. Aircraft exports, though lower in total share, continue to represent a strategic sector, likely influenced by long-term contracts and aerospace innovation. The export mix underscores the UK’s strength in precision manufacturing, technology, and life sciences, though geopolitical and trade policy changes continue to influence growth dynamics.
Monthly Trade in Goods 2025
| Trade Type | Apr 2025 (£bn) | Mar 2025 (£bn) | Change (£bn) | % Change |
|---|---|---|---|---|
| Total Exports | 28.4 | 31.1 | -2.7 | -8.8% |
| Total Imports | 50.0 | 50.0 | 0.0 | -0.1% |
| EU Exports | 13.7 | 14.3 | -0.6 | -4.3% |
| EU Imports | 26.7 | 26.4 | +0.3 | +1.0% |
| Non-EU Exports | 14.7 | 16.8 | -2.1 | -12.6% |
| Non-EU Imports | 23.3 | 23.6 | -0.3 | -1.3% |
The steep drop in UK goods exports during April 2025, down to £28.4 billion from £31.1 billion the prior month, marks a reversal in post-COVID export recovery. Non-EU exports took the brunt of the fall, declining 12.6%, which was more than double the rate of decline in EU-bound exports. The data implies that geopolitical developments, such as the US tariff hike, are directly influencing trade volumes. On the import side, total values remained stable (£50.0 billion), but compositionally there were subtle shifts: EU imports rose by 1.0%, while non-EU imports declined by 1.3%, pointing to a pivot back toward EU trading partners amid global uncertainty.
Adjusted for inflation using chained volume measures, the trends are more pronounced. Exports in real terms fell by 8.1%, indicating reduced foreign demand beyond just price effects. Imports, meanwhile, fell by 1.6%, partly due to a drop in energy prices, especially for fuels. This shows that UK businesses and consumers may still be purchasing similar volumes, but at lower prices. The net result of falling exports and stable imports is a widening monthly trade gap that reflects growing vulnerabilities in UK manufacturing and export-facing industries, particularly as the global economy enters a more protectionist phase.
UK Trade with the United States 2025
| Trade Flow | Apr 2025 (£bn) | Change (£bn) | Notes |
|---|---|---|---|
| Exports to US | Not stated | -£2.0 | Largest fall since Jan 1997 |
| Imports from US | Not stated | -£0.4 | Decline after months of growth |
| Machinery & Transport Exports | — | -£0.8 | Driven by car export drop |
| Material Manufactures | — | -£0.8 | Mainly non-ferrous metals |
| Chemical Exports | — | -£0.3 | Pharmaceuticals down |
April 2025 marked the most significant monthly drop in UK goods exports to the United States since 1997, declining by £2.0 billion. This sharp contraction follows the imposition of sweeping US tariffs on British goods, including a 25% levy on cars, steel, and aluminium, and a 10% blanket tariff on most other imports. The largest hits were seen in machinery and transport equipment (down £0.8 billion), non-ferrous metal exports (also down £0.8 billion), and pharmaceutical products (down £0.3 billion). These categories form the backbone of UK high-value exports, making the decline both symbolic and economically damaging.
While the UK government moved swiftly to negotiate a trade deal that rolled back some of the tariffs—most notably for car exports and metals—the wider 10% blanket duty remains in place. This partial relief may cushion future trade figures, but it’s unlikely to reverse the April dip immediately. The disruption illustrates the sensitivity of UK trade to unilateral foreign policy changes, especially from major partners like the US. The data underscores the importance of diversified export destinations and the strategic vulnerability of sectors reliant on a single major buyer. It also raises questions about the future shape of UK-US trade relations amid rising global protectionism.
Monthly Trade in Goods by Commodity 2025
| Commodity | EU Imports (£bn) | Non-EU Imports (£bn) | EU Exports (£bn) | Non-EU Exports (£bn) |
|---|---|---|---|---|
| Machinery & Transport | +0.3 | +0.5 | -0.2 | -0.9 |
| Chemicals | +0.2 | -0.2 | — | -0.5 |
| Fuels | -0.3 | -0.8 | -0.3 | — |
| Material Manufactures | — | +0.2 | — | -0.8 |
The breakdown of trade by commodity reveals diverging trends between EU and non-EU partners. Imports from the EU rose slightly due to increased car imports (machinery and transport equipment) and pharmaceutical products (chemicals), particularly from Germany, France, and Ireland. Conversely, imports from non-EU nations declined due to reduced purchases of fuel and inorganic chemicals, notably from the US, Norway, and Canada. The drop in fuel imports was driven by falling gas prices and possibly a shift in energy sourcing strategies amid global market instability.
On the export side, UK goods across nearly all major categories saw declines. Machinery and transport exports fell, mostly due to lower car shipments to the US, while chemical exports were hit by pharmaceutical slowdowns. The most significant drop came in material manufactures, particularly non-ferrous metals, again tied to US trade barriers. This compositionally weak export profile, concentrated in a few high-value industries and exposed to external shocks, highlights the UK’s challenge in building export resilience. Strengthening value chains in high-growth regions and investing in export promotion for emerging sectors could help offset some of this volatility.
Monthly Trade in Services 2025
| Services Trade | Apr 2025 | Change (£bn) | % Change |
|---|---|---|---|
| Imports | £86.2 billion (est.) | +£0.2 | +0.6% |
| Exports | £134.7 billion (est.) | +£0.2 | +0.4% |
In contrast to the volatility seen in goods trade, UK services trade posted a modest but stable performance in April 2025. Services imports and exports rose by £0.2 billion each, reflecting 0.6% and 0.4% monthly growth respectively. The sector’s resilience is driven by strong demand in areas like financial services, IT, and professional consultancy—industries where the UK maintains global competitiveness. Digital services, in particular, may be playing a growing role as more trade activity transitions online or becomes virtualized.
However, it is worth noting that these service figures are forecasts based on Q1 2025 data, and subject to revisions. Even so, the consistent expansion of services trade is a positive signal for the UK economy, suggesting that while physical goods trade faces geopolitical and economic friction, intangible trade flows remain robust. This trend may offer policymakers an avenue to prioritize service-sector development in post-Brexit trade strategies. Ensuring regulatory alignment with global standards and investing in digital infrastructure will be essential to capitalizing on this growth.
Three-Monthly Trade in Goods and Services (Feb–Apr 2025)
| Indicator | Value (£bn) | Change (£bn) | % Change |
|---|---|---|---|
| Total Exports | 225.0 | +4.7 | +2.1% |
| Total Imports | 236.5 | +9.5 | +4.2% |
| Goods Exports | 90.3 | +1.8 | +2.0% |
| Goods Imports | 150.3 | +6.2 | +4.3% |
| Services Exports | 134.7 | +2.9 | +2.2% |
| Services Imports | 86.2 | +3.4 | +4.1% |
Over the three months ending April 2025, UK trade data paint a broader picture of rising economic imbalance. While exports rose by £4.7 billion (+2.1%), imports surged ahead by £9.5 billion (+4.2%), resulting in a widening total trade deficit of £11.5 billion (excluding precious metals). Goods trade was the main contributor to this gap, with goods imports increasing by £6.2 billion, far outpacing the £1.8 billion rise in exports. This trend is reflective of sustained domestic demand amid stagnant or falling external demand, especially in light of currency volatility and global inflation.
The narrowing of the services trade surplus, down £0.5 billion to £48.5 billion, adds another layer of concern. While services continue to bolster the UK’s external balance sheet, their growth is not keeping pace with the surging cost of imports. These data indicate a growing structural trade deficit that could eventually lead to external financing concerns if sustained. Long-term solutions may lie in boosting export competitiveness, improving supply chain efficiencies, and creating stronger bilateral trade agreements with high-growth markets outside traditional EU and US channels.
Disclaimer: The data research report we present here is based on information found from various sources. We are not liable for any financial loss, errors, or damages of any kind that may result from the use of the information herein. We acknowledge that though we try to report accurately, we cannot verify the absolute facts of everything that has been represented.
