Introduction

Since Brexit, much attention has been placed on the United Kingdom’s global trading relationships. While new agreements with countries like the United States have been spotlighted, UK trade with the EU remains significantly more important. In this article, we explore the top five reasons why the EU continues to dominate the UK’s trade priorities in 2025.

1. Sheer Trade Volume

The European Union remains the UK’s largest trading partner, accounting for nearly 42% of total exports and 46% of imports. Despite political tensions, the proximity and historical economic ties make EU trade irreplaceable compared to the US, which accounts for a much smaller share of total UK trade.

2. Lower Transportation Costs

Geographical closeness matters. Shipping goods to and from the EU is faster, cheaper, and less risky than transporting across the Atlantic to the United States. This proximity reduces logistical costs and ensures faster supply chain operations, vital for industries like manufacturing and food production.

3. Integrated Supply Chains

Decades of EU membership created deeply integrated supply chains between UK and EU companies. From car manufacturing to pharmaceuticals, countless sectors depend on seamless cross-border collaboration that cannot be easily replaced by distant markets like the US.

4. Regulatory Alignment

Even post-Brexit, the UK maintains alignment with many EU regulatory standards to facilitate easier trade. In contrast, trading with the US often requires significant regulatory adjustments, adding complexity and cost for UK exporters.

5. Economic Stability of the EU

The EU’s economic resilience and large consumer market (over 440 million people) provide a reliable trading environment for British businesses. In uncertain global times, the relative stability of the EU compared to volatile trade dynamics with the US adds an extra layer of security.

Conclusion

While forging closer ties with the United States remains an important UK policy goal, UK-EU trade relations are currently far more critical to the nation’s economy. From volume and logistics to regulation and market stability, the EU continues to be the UK’s most valuable trading partner. For businesses and policymakers alike, strengthening and simplifying these ties will be essential moving forward.

Want to learn more about how Brexit continues to shape global trade? Read our in-depth analysis: Impact of Brexit on UK Trade Deals.