UK exports to the US returned to growth in May, official figures show, after the two countries agreed a trade deal that softened the blow of President Donald Trump’s tariff hikes.
Goods exports rose by £300 million during the month, the Office for National Statistics (ONS) revealed.
This followed a steep drop in April when exports declined by £2 billion – the largest monthly decrease since records began in 1997.
The total underlying trade deficit widened £6.7bn to £13.2bn in the 3 months to May because of a large rise in goods imports and a fall in goods exports.
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The value of goods shipped across the pond nonetheless remained relatively low in May, the ONS said.
A UK-US trade deal, announced on May 8, included lowering tariff rates on UK car exports to the US and removing tariffs on UK steel, aluminium and goods within the aerospace sector such as engines and aircraft parts.
The agreement was welcomed by industry groups following fears that some sectors would be hammered by the higher levies.
All other goods nonetheless will be subject to a 10% blanket tariff, brought in during Mr Trump’s “liberation day” announcements in April.
The US president is stepping up pressure on countries who could soon be subject to higher tariffs, urging them to negotiate trade deals with the US before an extended August 1 deadline.
May’s increase in exports to the US was due to a rise in chemical shipments, according to the ONS.
Meanwhile, imports of goods from the US to the UK fell by £900 million in May because of falls in gas and crude oil and ships and aircraft.
The overall value of exports from the UK increased by 2.2% in May, at £600 million, with increases both to EU and non-EU countries.
Nevertheless, the total goods and services trade deficit widened by £6.7 billion to £13.2 billion in the three months to May, because of a large rise in goods imports and a fall in goods exports.
