Kananaskis, Alberta, Canada (CNBC) — UK goods exports to the US dropped by 25% following President Trump’s tariff blitz, leading to a trade deficit with the UK’s largest trading partner. Car exports and overall goods exports have remained low since the tariffs were implemented, impacting the UK’s growth prospects.

Impact of Trump’s Tariffs
Following the introduction of tariffs, UK goods exports to the US fell by £1.5 billion, or 24.7%, while imports of goods increased, resulting in a trade deficit for three consecutive months. The Scotch whisky industry, a significant contributor to Scottish exports, faced new duties and challenges due to the tariffs imposed by the Trump administration.

Consequences for Exporters
Exporters are grappling with higher trading costs, raised employment costs, input price pressures, and reduced margins, making it difficult to compete internationally. The decline in exports to the US is likely to have long-term implications on the overall UK economy, according to experts.