UK exports to the US dropped to a three-year low after President Trump introduced tariffs, according to the latest trade data, writes David Connett.

The value of British goods imports to the US declined by £700m in June and by £4.7bn in the second quarter to the lowest since February 2022 after the US introduced tariffs on goods entering the country from April.

The figures do not reflect the impact of the UK-US trade agreement, which limits most tariffs on UK goods to 10 per cent and came into force on 30 June.

William Bain, head of trade policy at the British Chambers of Commerce, said: "Tariff effects are clearly being felt by companies exporting to the US.

"Total goods exports across the Atlantic for the second quarter 2025 were 13.5 per cent lower than a year ago.

"But the UK's performance is not all bleak, with strong services exports across the second quarter.

"This was the first full quarter of the 'reciprocal' US tariffs, which add an extra 10 per cent to most UK sectors, from food and drink to chemicals.

"The effect of these higher costs is becoming clear, with the lowest levels of goods exports to the US for three years."

Implementation of the UK's trade deal with the US in full is now needed to improve prospects, particularly for steel and aluminium goods.

The agreement should be a platform to discuss further tariff reform with the US, especially in goods sectors where there is little competition on production.