UK firms ramped up exports to US by nearly £500 million ahead of Trump's tariffs

British exports to the US surged by nearly a tenth, or around £500million, in February, as American firms stocked up ahead of President Donald Trump's trade tariffs on various countries.

Goods exports to the States climbed to £5.9billion for the month, the Office for National Statistics (ONS) revealed, marking a third consecutive monthly increase. Almost all British goods shipped to the US now face a minimum 10% trade tariff following Mr Trump's recent announcement. The US President also slapped a steeper 25% tax on steel and aluminium imports, including cars and car components last month. William Bain, the British Chambers of Commerce's trade policy chief, said: "There are clear signs that UK firms increased goods exports to the US ahead of the introduction of tariffs."

He added: "Securing a deal with the US, removing trade barriers with the European Union, and maximising potential in Indo-Pacific markets will be key to cushioning the negative impacts of the sweeping new US tariffs."

These statistics emerge as companies across various sectors of the UK economy anticipate setbacks from the fresh tariff regulations.

Diageo, the largest spirits producer globally, had already flagged a possible impact in February. Prior to any countermeasures, analysts predicted a £76million dent in profits, roughly 2% of earnings, due to the 10% tariffs last week.

British car manufacturers face significant challenges, as vehicles are the UK's top export to the US.

According to the ONS, UK car exports to the US totalled £8.3 billion in the year leading up to September 2024, accounting for almost 14% of total goods exported.

Additionally, US-focused clothing retailers such as JD Sports, Dr Martens, and Asos may be significantly impacted due to their extensive global supply chains in Asia and substantial US sales, as noted by analysts earlier in April.

In contrast, the ONS reported that the UK economy experienced an unexpected surge in growth, increasing by approximately 0.5% in February compared to no growth in the previous month.

George Roberts, a finance dealer at Ebury, stated: "Despite being insulated from shifts in US demand, the US is still the UK's most important export market-nearly double the size of the next."

He continued: "And, despite the Government's sudden rush to secure trade deals with the likes of India, the tariffs are undoubtedly a blow to key sectors such as automotive and pharmaceuticals just as UK growth is already walking a tightrope."

The ONS data reflects the situation in February, indicating that there was "no direct impact of tariffs" on the numbers, according to the statistics agency.

It also mentioned that the three consecutive months of increased US exports following the election in November last year "could indicate some evidence of changing trader behaviour, (but) it is important to note that monthly data can be erratic, so movements should be treated with caution."