Introduction
Prior to Brexit, the European Union was the UK’s most important trading partner and foreign export market, accounting for £291 billion in annual goods and services exports. However, when the UK formally left the EU in 2021, it introduced significant new trade barriers, including customs declarations, rules of origin requirements, sanitary and phytosanitary checks, and regulatory compliance costs. With new free trade agreements, including those with Australia, Japan, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) countries, foreign businesses can use the UK as a hub for both European and global trade.
Top Export and Import UK Markets
| Position | Country | Value 2023 – £ million | Value 2024 – £ million | % of Total UK goods |
|---|---|---|---|---|
| 1 | United States incl Puerto Rico | 61,600 | 59,302 | 16.2 |
| 2 | Germany | 33,839 | 23,072 | 8.8 |
| 3 | Netherlands | 31,056 | 27,936 | 7.6 |
UK trade in goods, top 30 export markets, Balance of Payments basis, seasonally adjusted, £ million
1. United States Dominates UK Export Markets
The United States is Britain’s largest export market, accounting for 16.2% of the UK’s total goods exports, with a value of £59.3 billion in 2024. This represents a significant shift from historical trade patterns, showcasing the UK’s pivot toward non-EU markets following Brexit.
| Position | Country | Value 2023 – £ million | Value 2024 – £ million | % of Total UK goods |
|---|---|---|---|---|
| 1 | Germany | 74,640 | 71,759 | 12.1 |
| 2 | China | 65,963 | 65,358 | 11 |
| 3 | United States inc Puerto Rico | 58,324 | 57,145 | 9.7 |
UK trade in goods, top 50 import sources, Balance of Payments basis, seasonally adjusted, £ million
2. Germany Leads UK Import Sources
Germany remains the UK’s largest import source, providing £71.8 billion worth of goods in 2024 (12.1% of total UK imports), followed closely by China at £65.4 billion (11% of total imports).
3. Declining Trade Values with Key EU Partners
The data reveals a downward trend in UK exports to major EU markets, with exports to Germany falling from £33.8 billion to £32.1 billion (-5.2%) and exports to the Netherlands dropping significantly from £31.1 billion to £27.9 billion (-10.1%) between 2023 and 2024.
The UK manufacturing and automotive export sectors faced challenges in EU markets post-Brexit, particularly impacting just-in-time production methods, which are essential to automotive supply chains. within the last few years new opportunities are emerging in Asia-Pacific and North America, with the US becoming the UK’s largest destination for car exports.
Brexit has significantly disrupted UK trade, with exports to the EU falling by 23% from 2017 to 2024, while imports declined by only 5%. The Trade and Cooperation Agreement reduced total UK goods exports by an estimated £27 billion (6.4%) in 2022, with 14% of firms that previously exported to the EU stopping altogether after the agreement came into force.
UK exporters face substantial barriers, including complex customs procedures, extensive export documentation requirements, and regulatory divergence, such as the requirement for the new UKCA safety mark to replace the EU’s CE mark.
Work with us for your exports in the UK
At GLOBAL ANGLE, our team combines local expertise with global experience for market research in the UK. From assessing feasibility to building a winning strategy, we’ve helped international clients successfully establish their presence in the UK, and we can do the same for your company. Contact us today for a free, non-obligatory consultation.
