London Daily

Focus on the big picture.
Thursday, Jul 31, 2025

UK exports to Europe fall 41% as Brexit hits trade

UK exports to Europe fall 41% as Brexit hits trade

Britain's exports to Europe collapsed in January as companies grappled with new terms of trade following Brexit.

The United Kingdom exported goods worth £8.1 billion ($11.3 billion) to the European Union in its first month completely outside the bloc, a 41% decline compared to December, according to the Office for National Statistics. The drop off in trade is similar when compared to January 2020, ONS data shows.

Imports from the bloc tumbled 29% to £16.2 billion ($22.6 billion) in January compared with the previous month, when UK companies stockpiled goods ahead of the end of the Brexit transition period. The import and export figures do not include trade in gold and other precious metals.

The plunge in activity with its biggest trading partner led to the largest monthly declines in Britain's overall goods imports and exports since 1997, the ONS said.

"The January data on UK trade paint a clear picture: while the free trade agreement for goods that the UK and EU signed late last year has mostly brought an end to four and a half years of uncertainty, it does not hold a candle to free trade without paperwork and other non-tariff barriers that the UK once enjoyed as part of the single market," said Kallum Pickering, a senior economist at Berenberg.

Since the United Kingdom completed its departure from the European Union on December 31, British exporters have had to contend with new border checks and customs processes that have delayed shipments to Europe. Prime Minister Boris Johnson's description of the difficulties as "teething problems" has prompted pushback from business groups.

"External evidence suggests some of the slower trade for goods in early January 2021 could be attributable to disruption caused by the end of the transition period," the ONS said in a statement on Friday. Importing and exporting began to increase towards the end of the month, it added.

The ONS said that trade has "not been typical in recent months" and urged caution when comparing the report to recent data. The United Kingdom also went into a new national coronavirus lockdown at the beginning of January, which has weighed on economic activity.

UK GDP fell 2.9% in January compared with the previous month, when it expanded, according to the ONS. GDP was 9% below levels seen last February, before the coronavirus hit. The services sector acted as the main drag on growth, while manufacturing suffered its first contraction since April 2020, the ONS said.

Brexit knocks fish, cars


One stark example of what Brexit has meant for UK companies has come from Scotland's fishing industry, which was thrown into crisis by post-Brexit red tape that meant fresh fish couldn't reach customers on time and had to be dumped in some cases.

"While the plunges in exports and imports weren't entirely due to Brexit, they increase the chances that Brexit will have a longer lasting influence on trade flows," said Paul Dales, chief UK economist at Capital Economics.

According to the ONS, exports of food and live animals including seafood to the European Union decreased by nearly 64% in January compared to the previous month.

Trade in cars also fell sharply, linked to a fall in demand, reduced manufacturing and global supply chain issues. Automakers have been hit by a critical shortage of computer chips, which has prompted temporary production stoppages and factory closures.

Pharmaceutical products traded with EU countries suffered the largest overall declines in imports and exports, which was likely a consequence of stockpiling in preparation for Brexit, the ONS said.

Newsletter

Related Articles

0:00
0:00
Close
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
×