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Tariffs

UK-US Trade Deal: Key Takeaways and Statistics

Strategic Insights

— 1 min read

Following weeks of talks, the UK and US have signed the first part of their trade agreement, which includes a 10% levy on most UK goods and steel remaining a question mark. The deal also includes reciprocal access to 13,000 metric tonnes of beef for both US and British farmers. While the agreement is seen as a relief for UK exporters, there are concerns over what it could mean for UK food standards and the domestic meat and livestock industry.

Key Takeaways:

  • The UK-US trade deal includes a 10% levy on most UK goods, with steel tariffs still in place at 25%.
  • The deal allows for reciprocal access to 13,000 metric tonnes of beef for both US and British farmers.
  • There are concerns over what the deal could mean for UK food standards, with the UK Government assuring that any US imports will need to meet UK food safety standards.
  • The agreement could hit UK canned food exports, with US estimates suggesting that the maintenance of 25% steel tariffs could raise prices by up to 15%.
  • The removal of tariffs on US bioethanol exports to the UK for a quota of 1.4bn litres could hit UK farmers growing wheat for bioethanol hard and lead to job losses for UK bioethanol producers.
  • UK exporters will be relieved that they are not facing the higher tariffs being imposed by the US on many nations.
  • The agreement could have crippling competition for British farmers, with 13,000 tonnes of strip loins representing approximately 30% of that same cut produced domestically.
  • The UK Government has confirmed that it will continue to press for the removal of tariffs entirely.

Statistics:

  • 10% levy on most UK goods
  • 25% tariffs on steel
  • 13,000 metric tonnes of beef for reciprocal access
  • 50% global rate of tariffs touted by the UK Government as a reason for removing 25% tariffs in full
  • 1.4bn litres of bioethanol exports for the UK
  • 30% of strip loins produced domestically that could be represented by 13,000 tonnes
  • 15% price increase for canned foods due to US steel tariffs

Sources:

  • Rod Addy, director general at the Provision Trade Federation (PTF)
  • Nick Allen, CEO at the British Meat Processors Association (BMPA)
  • Andy Richardson, strategic government advisor, supply chain consultant, and chair at Food & Drink Wales
  • US estimates on the impact of steel tariffs on UK canned food exports
  • UK Government press releases and statements on trade agreements and tariffs.

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