FX.co ★ UK Non-EU Trade Deficit Narrows Sharply in January 2026

The United Kingdom’s trade deficit with non-EU countries narrowed significantly at the start of the year, suggesting an easing of external imbalances outside the European bloc. According to the latest data updated on 13 March 2026, the UK’s non-EU trade balance improved to a deficit of £3.46 billion in January 2026, from a much wider shortfall of £10.99 billion recorded in December 2025.

This marked month-on-month shift indicates a substantial reduction in the gap between imports from and exports to non-EU partners. While the figures do not specify the underlying drivers, such a sharp move in the balance can typically reflect changes in global demand conditions, price dynamics, or shifts in the composition and timing of trade flows. Investors and policymakers will be watching subsequent releases closely to see whether January’s improvement proves to be the start of a sustained trend or a temporary adjustment in the UK’s non-EU trade position.