US-UK Plastics Trade Surplus Soars to Record Heights

The United States has maintained an unbroken plastics trade surplus with the United Kingdom for more than a quarter century, with recent figures showing the advantage continues to widen.

Data reveal that in 2023, the US recorded a $296.5 million surplus in plastics trade with the UK, primarily fueled by strong performances in resin ($218.1 million surplus) and plastic products ($88.2 million surplus). These robust sectors effectively counterbalanced the relatively minor deficits in plastics machinery ($2.3 million) and molds ($7.6 million).

In a blog post, Plastics Industry Association (PLASTICS) Chief Economist Perc Pineda, PhD, wrote that preliminary figures for 2024 paint an even more impressive picture for US plastics manufacturers and exporters. The overall trade surplus has expanded dramatically to $451.9 million — representing a 52% increase from the previous year.

"This growth stems from substantial gains in both resin and plastic products sectors, which posted surpluses of $290.6 million and $191.8 million respectively," Pineda wrote. "Industry analysts note these gains come despite widening deficits in machinery ($21.2 million) and molds ($9.2 million), highlighting the overwhelming strength of America's resin and finished products segments in the transatlantic plastics market."

Trump escalates global tariff strategy

Since July 7, 2025, President Donald Trump has been dispatching letters outlining new tariff rates to countries worldwide, including major trading partners Canada, Japan, South Korea, and the European Union, according to the White House.

While the administration characterized these unilateral tariff declarations as "deals" in a statement, the communications shared with foreign governments thus far contain no evidence of mutually negotiated trade agreements, instead presenting predetermined tariff levels set to take effect August 1.

The administration has formally announced what it described as four completed arrangements — with the UK, China, Vietnam, and Indonesia. These unilateral tariff declarations represent a dramatic shift in American trade policy, creating significant uncertainty in global markets as the August 1 implementation deadline approaches. Economic analysts note these measures would raise the overall US effective tariff rate to approximately 19.7% — the highest level since 1933.

In June, Trump signed an executive order implementing American commitments under the terms of the United States-United Kingdom Economic Prosperity Deal.

"The deal includes billions of dollars of increased market access for American exports, especially in agriculture, dramatically increasing access for American beef, ethanol, and virtually all of the products produced by our great farmers," Trump said in a statement.

The plastics landscape

From January to May 2025, US plastics exports to the UK rose by 4.2% year-over-year, while imports from the UK declined by 12.6%. Imports of molds and plastic products fell sharply — down 22.6% and 21.4%, respectively — compared to the same period in 2024. However, Pineda noted that imports of plastics machinery from the UK increased by 11.4%. Although US resin exports to the UK edged down by 0.3%, the US still recorded a $125.3 million trade surplus in resin during this period.

Provisions in the US-UK trade framework, such as lower tariff-rate quotas on vehicles, help support continued resin-based trade — particularly where resin is embedded in automotive manufacturing.

The US–UK trade deal also expands US market access in the UK — creating what the United States Trade Representative estimates as a $5 billion opportunity in new exports. The agreement also includes sector-specific tariff cuts and commitments to supply chain security. Pineda noted that while it is not a full free trade agreement, the deal lays the groundwork for future cooperation to further strengthen bilateral trade.

Clarity for plastics trade

The trade deal provides clarity — particularly in the short term — on how the plastics industry in both countries can continue operating under the new tariff environment, according to Pineda.

The agreement, Pineda noted, may help protect the competitive position of the US plastics industry in the UK, where it has historically maintained a strong trade surplus.

"For components and equipment necessary to keep US manufacturing humming — many of which are no longer made domestically — tariff rates should be fair rather than cost-prohibitive," he wrote. "This is especially relevant given the ongoing US trade deficit in plastics equipment with the UK, which suggests that imports of equipment to the US plastics industry and by extension, the broader manufacturing sector of the US."

The April 9, 2024, announcement of reciprocal tariffs has triggered a series of diplomatic initiatives aimed at preserving trade stability between the United States and its international partners. Pineda wrote that these measures represent a more moderate approach compared to earlier proposals that threatened substantially higher tariffs. Current negotiations center on establishing equitable trade practices and market access opportunities, potentially reshaping global commerce patterns in the coming years.

America's economic landscape reflects decades of manufacturing migration offshore, creating significant dependency on imported goods that are no longer produced domestically. While political rhetoric often emphasizes reshoring, Pineda noted the reality involves complex, multi-year transitions with uncertain outcomes for the broader US manufacturing sector. Companies face substantial challenges in rebuilding domestic production capabilities that have eroded over generations.

Policymakers increasingly recognize the delicate balance between supporting strategic domestic industries and maintaining access to essential global supply chains. This nuanced approach acknowledges that certain sectors warrant protection for national security and economic sovereignty reasons, while simultaneously ensuring American manufacturers retain access to critical imported components and equipment necessary for competitive operations.

Pineda concluded the resulting policy framework attempts to navigate these competing priorities while minimizing disruption to established business models.