UK growth ‘stutters’ in Q2 as US exports sink 25%

Trade with the US has plunged since the Liberation Day tariffs came into force. This partly reflects exporters rushing shipments to beat the levies, but also the dampening effect of ongoing uncertainty on the vital transatlantic trade route.

While the trade deal offers a degree of certainty and favourable terms compared to other global economies, UK exporters are nonetheless contending with a far more restrictive tariff regime than a year ago.

These higher costs are squeezing both exporters and importers, forcing difficult decisions between absorbing the hit or passing it on to customers in an already fragile economy.

With businesses facing rising costs and uncertainty, we would urge them to explore all options, including reviewing FX hedges and securing flexible finance to build resilience to any incoming headwinds.