The United Kingdom has maintained a goods trade surplus with the United States for the majority of the past 25 years, with the exception of 2022. In 2024, the trade surplus stood at £2.1 billion, marking the narrowest margin since 2001. This development comes after a notable deficit of £2.0 billion in 2022, attributed to the European energy crisis. The UK's export activities to the US remain robust, with significant contributions from sectors such as automotive, pharmaceuticals, mechanical power generators, scientific instruments, and aerospace.
In 2024, the UK exported goods valued at £58.7 billion to the US, while imports from the US amounted to £56.6 billion. Reflecting a more balanced trade relationship, the total trade between the two nations reached £294.1 billion by the end of Q3 2024. The US continues to be the UK's largest trading partner, accounting for 17.2% of total UK trade during this period.
Historically, the UK's goods trade surplus with the US reached its peak at £12.9 billion in 2015. However, recent years have seen fluctuations due to global economic challenges. In 2023, the surplus was recorded at £2.6 billion, indicating a rebound from the previous year's deficit. Despite these variations, total exports from the UK to the US were substantial, totaling £182.6 billion in the four quarters leading to Q3 2024.
The UK's import activities from the US remain equally significant, with total imports amounting to £111.5 billion in the same period. This growing economic exchange highlights an increasingly balanced trade relationship between the two nations. Despite these positive trends, potential concerns loom over future trade dynamics. The UK's VAT regime could face scrutiny under President Trump's administration if new 'reciprocal' tariffs are introduced.
The wide range of export goods underscores the diverse sectors contributing to the UK's trade surplus. Automotive products lead the export list, followed closely by medicinal and pharmaceutical products, mechanical power generators, scientific instruments, and aircraft. These industries play a pivotal role in sustaining the UK's favorable trade balance with its transatlantic ally.
In contrast, imports from the US are equally diverse, reflecting mutual economic interdependence. The narrowing of the trade surplus in 2024 exemplifies this evolving dynamic. The UK continues to capitalize on its strong trading relationship with the US, despite occasional setbacks such as the energy crisis in 2022.