UK runs good trade deficit of $28.5B in May

By Mucahithan Avcioglu

ISTANBUL (AA) - The UK's trade balance posted a deficit of £21 billion ($28.5 billion) in May, unchanged from the previous month, the Office for National Statistics (ONS) said on Friday.

The market had expected the monthly deficit to come in at £21.1 billion.

The country's goods exports totaled £29.1 billion, up 2.2% month-on-month, while goods imports reached £50.1 billion, rising 1.2% in the same period, the office said.

Exports to EU member states were at £14.4 billion, up 2.9% monthly in May, while imports came in at £26.7 billion, also up 1.3%, resulting in a deficit of £12.3 billion.

The trade deficit to non-EU countries was £8.7 billion, with exports rising 1.5% to £14.7 billion and imports climbing 1.2% to £23.4 billion.

Exports to the US climbed £300 million in May. "This increase in exports was because of a rise in chemical exports, driven by increased exports of inorganic chemicals. The value of goods exports to the United States in May 2025 remained relatively low," the ONS said.

Meanwhile, imports of US goods fell £900 million in May due to falls in imports of "unspecified goods," fuels, and machinery and transport equipment.

The ONS mentioned how the US imposed "a range of tariffs" on imports of goods to the US on April 2, with imports from the UK subject to a blanket 10% tariff and imports of steel and aluminum as well as cars and car parts subject to a higher 25% tariff.

After that, the US and the UK signed a trade deal on May 8, which included "lowering the tariff on UK car exports to the United States and removing tariffs on UK aluminum and steel exports. All other commodities will remain subject to the 10% blanket tariff on exports."

The office said that there have been considerable changes in the US' international trade policy in recent months, which has posed challenges for UK businesses.

"The Business Insights and Conditions Survey (BICS) reports that, of businesses surveyed between 19 May 2025 and 1 June 2025, 6.1% had experienced additional costs, 4.3% had experienced reduced demand, and 2.9% had experienced supply chain disruption over the previous month," the ONS added.