UK trade deficit widens as import costs outpace export growth

The UK’s trade deficit widened sharply in the three months to April 2026, as rising imports outpaced export growth and fuel-related disruption continued to affect trade flows.

New figures from the Office for National Statistics show the total goods and services trade deficit, excluding precious metals, widened by £7.7bn to £9.9bn in the three months to April compared with the three months to January.

The goods deficit widened by £7.6bn to £62.5bn, while the services surplus was broadly stable at £52.6bn. Goods imports rose by £9.3bn over the period, compared with a £1.7bn increase in goods exports.

The monthly data showed some resilience in export activity. Goods exports increased by £0.8bn in April, with exports to both EU and non-EU countries rising. Goods imports also increased by £0.8bn, driven by higher imports from the EU.

The ONS said EU imports rose partly because of higher fuel imports, including refined oil from the Netherlands. Imports from non-EU countries fell, with lower fuel imports from Norway, the US, Kuwait, Nigeria and the UAE potentially linked to disruption around the Strait of Hormuz.

For trade finance providers, the figures point to a difficult operating environment for importers and exporters. Rising import values can increase working capital pressure, while uneven export growth can leave businesses more exposed to currency, logistics and payment delays.

The widening deficit also underlines the importance of trade finance, export credit and receivables finance tools as companies try to manage cashflow through volatile trade conditions.