Perc Pineda, PhD
Chief Economist, PLASTICS
July 17, 2025
The U.S. has consistently maintained a plastics trade surplus with the UK since at least 1997 though the balance has fluctuated over time. In 2023, the U.S. recorded a $296.5 million surplus, driven by a $218.1 million surplus in resin and an $88.2 million surplus in plastic products. These gains more than offset trade deficits of $2.3 million in plastics machinery and $7.6 million in molds. Preliminary data for 2024 indicates an even wider surplus of $451.9 million—reflecting a $290.6 million surplus in resin and a $191.8 million surplus in plastic products, despite larger deficits of $21.2 million in machinery and $9.2 million in molds.
Trade Framework Supports Surplus Despite Import Shifts
From January to May 2025, U.S. 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, imports of plastics machinery from the UK increased by 11.4%. Although U.S. resin exports to the UK edged down by 0.3%, the U.S. still recorded a $125.3 million trade surplus in resin during this period. Provisions in the U.S.–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 U.S.–UK trade deal, contained within the Economic Prosperity Deal (EPD), is an agreement in principle that significantly expands U.S. market access in the UK—creating what the USTR estimates as a $5 billion opportunity in new exports. The agreement also includes sector-specific tariff cuts and commitments to supply chain security. While not a full free trade agreement, the deal lays the groundwork for future cooperation to further strengthen bilateral trade.
Clarity for Plastics Trade and a Call for Balanced Tariffs
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. Additionally, the agreement may help protect the competitive position of the U.S. plastics industry in the UK, where it has historically maintained a strong trade surplus. For components and equipment necessary to keep U.S. manufacturing humming—many of which are no longer made domestically—tariff rates should be fair rather than cost-prohibitive. This is especially relevant given the ongoing U.S. trade deficit in plastics equipment with the UK which suggests that imports of equipment to the U.S. plastics industry and by extension, the broader manufacturing sector of the U.S.
Since the announcement of reciprocal tariffs on April 9, 2024, there have been developments aimed at maintaining stable trade flows between the United States and its partners, compared to what might have occurred under earlier proposals for higher tariffs. Ongoing discussions focused on trade fairness and market access could shape future patterns of global commerce. The U.S. economy has long relied on imports of goods no longer manufactured domestically, reflecting the broader shift toward offshore production over several decades. Reshoring such production is a complex, long-term process, and its overall impact on U.S. manufacturing remains uncertain. At the same time, there is a recognized interest in supporting domestic production in sectors considered important to national security and strategic economic priorities, while ensuring continued access to imported components and equipment essential to industrial operations.
The proximity of the U.S. and Latin America comes with tremendous trade opportunities among countries…
