Why is shipping from the US to the UK so expensive?

Why Shipping from the US to the UK is Costly: Absence of Preferential Trade Agreements

Shipping costs between the United States and the United Kingdom tend to be significantly higher compared to other international routes. This disparity can be attributed to the lack of preferential trade agreements (PTAs) between the two nations.

PTAs are agreements between countries that establish reduced tariffs, taxes, and other trade barriers for goods and services. The absence of such agreements between the US and the UK means that goods shipped between these countries are subject to full duties and taxes, increasing the overall cost of transportation.

In contrast, the EU has a comprehensive PTA with the US known as the Transatlantic Trade and Investment Partnership (TTIP). TTIP eliminates tariffs and reduces other trade barriers for a wide range of goods, resulting in lower shipping costs between the US and EU countries.

The lack of a similar agreement between the US and the UK has a direct impact on the price of transporting goods. Businesses and consumers must pay higher duties and taxes, which are passed on to the final cost of the products. This makes it more expensive for businesses to export from the US to the UK and for consumers to purchase goods from UK-based retailers.

To address this issue, the US and UK have been negotiating a new trade agreement that would reduce tariffs and other barriers. However, negotiations have been slow and complex, with no clear timeline for an agreement.

Until a PTA is in place, the cost of shipping from the US to the UK will remain higher than it could be. This has implications for businesses, consumers, and the overall trade relationship between the two countries.