Locked in a trade balancing act with the U.S., the UK hopes it can escape some Trump tariffs

In the wake of U.S. President Donald Trump's ramped-up trade tariffs, the United Kingdom is hoping its balanced trade relationship with the U.S. might help it avoid the brunt of the import duties. As the international community prepares for the fallout of Trump's tariffs, and with more targeted levies expected, the U.K. is banking on its trade standing with the U.S. to secure a more lenient approach from the president.

Trump has been vocal about his dissatisfaction with trade deficits between the U.S. and its major trading partners such as Canada, China, Mexico, and the European Union. He has either imposed or threatened to impose tariffs of up to 25% on imports from these nations.

However, the U.K.'s trade relationship with the U.S. is more balanced. According to data released in February, the U.K. nearly matches the U.S. in the import and export of goods, and actually holds a surplus in the trade of services.

This balanced relationship is crucial for the U.K., as the U.S. was Britain's leading trading partner in the year leading up to September 2024, accounting for over 17% of total British trade.

Trump has previously shown a fondness for the U.K., enjoying a state visit and maintaining a good rapport with Prime Minister Keir Starmer, despite their differing ideologies. The president has acknowledged the U.S.-U.K. trade relationship is less problematic for him and has expressed belief in the possibility of a mutually beneficial trade deal.

Nevertheless, Trump's vow to impose tariffs on "all countries" has caused concerns in the U.K. about the feasibility of striking a specific trade deal with Washington before the White House announces a new round of country-based, sectoral and "reciprocal" tariffs on Wednesday. The U.K. remains hopeful, but the outcome is, as yet, uncertain.