The blow to GDP came mainly from the services sector, which shrank by 0.4%, led by a slump in real estate and legal activity following the end of a temporary property transaction tax break. That alone accounted for two-thirds of the GDP decline.Exports to the US fell by £2 billion in April — the largest monthly drop on record — as Trump’s tariffs on global imports, including a 10% levy on goods and higher rates on aluminium and steel, began to bite. Britain remains the only major economy with a bilateral trade deal aimed at shielding it from some of these duties, but core tariffs remain in place, Reuters reported. Industrial production fell 0.6%, with manufacturing down 0.9%.The Office for National Statistics (ONS) also reported that the UK’s goods trade deficit widened to £23.2 billion in April from £19.9 billion in March, exceeding expectations.Analysts remain cautious about the path forward. “The drag from US trade policy has added to a range of domestic headwinds,” said Swannell, warning that the seasonal volatility seen since the pandemic may continue to skew month-to-month GDP readings.