UK-US tariff deal: The new opportunity for food and drink
In a move which allows the UK to join a group of select countries such as Australia, negotiations between the UK and US have resulted in the countries agreeing to allow the import of up to 13,000 metric tonnes of beef from the other, which would significantly expand the US’s sale of beef to the UK.
The new opportunity
1. Trade
Previously, this trade faced 20% duties and was capped at 1,000 metric tonnes. The US said the deal would create a £3.8bn opportunity for exports, including $250m in agricultural products.
2. Food standards
However, the UK has said that, whilst this gives British farmers unprecedented access to the US market, there will be no weakening of food standards for imports – this demonstrates the UK’s alignment with EU regulations over the US.
3. Ethanol
In addition, the UK has agreed to remove the tariff on ethanol. This gives the US access to 1.5 billion litres of ethanol, duty-free.
British farmers have raised concerns over this, as biofuels such as ethanol are vital for the growing of crops and domestic demand is high – up to two million tonnes are required every year to support arable farming and to produce up to 1 million tonnes of animal feed. Therefore, there is concern that removing the tariff on ethanol could result in a loss of profit for British arable farmers.
Contents
- Food for Thought: Food and drink regulatory update: Summer 2025
- Soft Drinks Industry Levy consultation
- Brexit reset deal: Implications for UK-EU food and drink trade
- Are you prepared for the new failure to prevent fraud offence?
- The National Food Crime Unit: Will new powers make a difference to tackling food fraud?
- Are local authorities going to gain powers to charge fees for intervention?
- Update on the Deposit Returns Scheme and the Deposit Management Organisation
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