London Daily

Focus on the big picture.
Wednesday, Dec 31, 2025

UK exports to EU fell by £20bn last year, new ONS data shows

UK exports to EU fell by £20bn last year, new ONS data shows

Figures show Brexit compounding Covid disruption, with clothing exports plunging 60%, vegetables down 40% and cars 25%

UK exports of goods to the EU have fallen by £20bn compared with the last period of stable trade with Europe, according to official figures marking the first full year since Brexit.

Numbers released on Friday by the Office for National Statistics (ONS) showed that the combined impact of the pandemic and Britain’s exit from the single market caused a 12% fall in exports between January and December last year compared with 2018.

Highlighting the disproportionate impact of leaving the EU, exports to the rest of the world excluding the 27-nation bloc dropped by a much smaller £10bn, or about 6% compared with 2018 levels.

The ONS compared trade performance against figures from three years ago because that was the last year before distortions caused by firms stockpiling ahead of Brexit deadlines and the spread of Covid-19.

Despite the disruption, the EU remains the UK’s largest trading partner. However, for the first time since comparable records began in 1997, the UK now spends more importing goods from the rest of the world than it does from the EU.

UK goods imported from the EU were down almost 17%, or about £45bn, compared with 2018. In comparison, imports from the rest of the world increased by almost 13%, or about £28bn.


With the EU accounting for just over half of UK exports worldwide, economists said Brexit was serving as an extra headwind for Britain, compounding the disruption from Covid being felt across advanced economies. “UK exporters are continuing to lose market share,” said Gabriella Dickens, an economist at the consultancy Pantheon Macroeconomics.

Although trade levels have picked up in recent months, data from the Netherlands Bureau for Economic Policy Analysis show that real goods exports from advanced economies were 3.8% above their 2018 average in November, outpacing the UK.

The hardest-hit commodities recorded dramatic falls. Outbound shipments of clothing and footwear to the EU were both down by almost 60% compared with 2018. Food and live animal exports – for which more stringent border checks are required – were down almost 18%, while vegetable exports dropped by almost 40%. Shipments of cars to the EU, heavily disrupted by global supply chain issues and Covid, were down by a quarter.

Guillermo Larbalestier, a trade economist at the University of Sussex, said the drop in vegetable exports was probably linked to a fall in the number of seasonal workers available to pick and process crops, more burdensome paperwork and the difficulty in exporting perishable goods in the face of extended delays at the border.

Clothing exports have been affected because a high proportion of garments sold by UK retailers are made in Asia or the US, making them ineligible for the tariffs negotiated in the post-Brexit trade deal.


However, the latest figures do suggest a recovery from the worst of the Brexit damage seen in January 2021, just after Britain’s departure, when exports to the EU plunged by 40%.

According to the latest figures, UK exports to the EU were about £200m higher in December 2021 than the same month in 2018, but much of this was driven by an increase in wholesale gas prices on international energy markets.

Business leaders have warned that border restrictions and reams of red tape have pushed up costs and added to delivery times, permanently undermining the competitiveness of UK goods on the continent.

Sixty-seven percent of firms experienced a challenge when exporting and 72% when importing in the last month, according to ONS surveys.

“There is a lot more friction on trade, which you would expect to have a more medium-to long-term impact,” said Grant Fitzner, chief economist at the ONS.

Gareth Thomas, the shadow international trade minister, said the government had exaggerated the benefits of trade deals with countries outside the EU that have yet to be negotiated. “Ministers are not doing enough to support our exporters in markets outside Europe, while the deal they negotiated with the EU has led to long lorry queues into Dover, a big increase in red tape and a significant decline in trade,” he said.

A UK government spokesperson said: “UK goods exports to EU nations were 4% higher last year compared with 2020. However, as the ONS itself recognises, the impact of the Covid-19 pandemic, global recession and supply chain disruption, have caused higher levels of volatility in recent statistics. It is therefore still too early to draw any firm conclusions on the long-term impacts of our new trading relationship with the EU.

“We are continuing to ensure that businesses get the support they need to trade effectively with Europe.”

Newsletter

Related Articles

0:00
0:00
Close
No UK Curfew Ordered as Deepfake TikTok Falsely Attributes Decree to Prime Minister Starmer
Europe’s Largest Defence Groups Set to Return Nearly Five Billion Dollars to Shareholders in Twenty Twenty-Five
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
Trump Threatens Strikes Against Iran if Nuclear Programme Is Restarted
Apple Escalates Legal Fight by Appealing £1.5 Billion UK Ruling Over App Store Fees
UK Debt Levels Sit Mid-Range Among Advanced Economies Despite Rising Pressures
UK Plans Royal Diplomacy with King Charles and Prince William to Reinvigorate Trade Talks with US
King Charles and Prince William Poised for Separate 2026 US Visits to Reinforce UK-US Trade and Diplomatic Ties
Apple Moves to Appeal UK Ruling Ordering £1.5 Billion in Customer Overcharge Damages
King Charles’s 2025 Christmas Message Tops UK Television Ratings on Christmas Day
The Battle Over the Internet Explodes: The United States Bars European Officials and Ignites a Diplomatic Crisis
Princesses Beatrice and Eugenie Join Royal Family at Sandringham Christmas Service
Fine Wine Investors Find Little Cheer in Third Year of Falls
UK Mortgage Rates Edge Lower as Bank of England Base Rate Cut Filters Through Lending Market
U.S. Supermarket Gives Customers Free Groceries for Christmas After Computer Glitch
Air India ‘Finds’ a Plane That Vanished 13 Years Ago
Caviar and Foie Gras? China Is Becoming a Luxury Food Powerhouse
Hong Kong Climbs to Second Globally in 2025 Tourism Rankings Behind Bangkok
From Sunniest Year on Record to Terror Plots and Sports Triumphs: The UK’s Defining Stories of 2025
Greta Thunberg Released on Bail After Arrest at London Pro-Palestinian Demonstration
Banksy Unveils New Winter Mural in London Amid Festive Season Excitement
UK Households Face Rising Financial Strain as Tax Increases Bite and Growth Loses Momentum
UK Government Approves Universal Studios Theme Park in Bedford Poised to Rival Disneyland Paris
UK Gambling Shares Slide as Traders Respond to Steep Tax Rises and Sector Uncertainty
Starmer and Trump Coordinate on Ukraine Peace Efforts in Latest Diplomatic Call
The Pilot Barricaded Himself in the Cockpit and Refused to Take Off: "We Are Not Leaving Until I Receive My Salary"
UK Fashion Label LK Bennett Pursues Accelerated Sale Amid Financial Struggles
U.S. Government Warns UK Over Free Speech in Pro-Life Campaigner Prosecution
Newly Released Files Shed Light on Jeffrey Epstein’s Extensive Links to the United Kingdom
Prince William and Prince George Volunteer Together at UK Homelessness Charity
UK Police Arrest Protesters Chanting ‘Globalise the Intifada’ as Authorities Recalibrate Free Speech Enforcement
Scambodia: The World Owes Thailand’s Military a Profound Debt of Gratitude
Women in Partial Nudity — and Bill Clinton in a Dress and Heels: The Images Revealed in the “Epstein Files”
US Envoy Witkoff to Convene Security Advisers from Ukraine, UK, France and Germany in Miami as Peace Efforts Intensify
UK Retailers Report Sharp Pre-Christmas Sales Decline and Weak Outlook, CBI Survey Shows
UK Government Rejects Use of Frozen Russian Assets to Fund Aid for Ukraine
UK Financial Conduct Authority Opens Formal Investigation into WH Smith After Accounting Errors
UK Issues Final Ultimatum to Roman Abramovich Over £2.5bn Chelsea Sale Funds for Ukraine
Rare Pink Fog Sweeps Across Parts of the UK as Met Office Warns of Poor Visibility
UK Police Pledge ‘More Assertive’ Enforcement to Tackle Antisemitism at Protests
UK Police Warn They Will Arrest Protesters Chanting ‘Globalise the Intifada’
Trump Files $10 Billion Defamation Lawsuit Against BBC as Broadcaster Pledges Legal Defence
UK Says U.S. Tech Deal Talks Still Active Despite Washington’s Suspension of Prosperity Pact
UK Mortgage Rules to Give Greater Flexibility to Borrowers With Irregular Incomes
UK Treasury Moves to Position Britain as Leading Global Hub for Crypto Firms
U.S. Freezes £31 Billion Tech Prosperity Deal With Britain Amid Trade Dispute
Prince Harry and Meghan’s Potential UK Return Gains New Momentum Amid Security Review and Royal Dialogue
Zelensky Opens High-Stakes Peace Talks in Berlin with Trump Envoy and European Leaders
Historical Reflections on Press Freedom Emerge Amid Debate Over Trump’s Media Policies
×