UK-US tariff agreement: Concerns over beef and ethanol escalate as key details remain unknown
Image credit: White House
The UK has become the first nation to reach a tariff agreement with the US since President Donald Trump levied baseline 10% tariffs on all foreign countries last month. While full details have not yet been disclosed, import taxes on beef and ethanol products from the US have been removed. Stock prices lifted this morning following the announcements.
The deal establishes a reciprocal tariff-free quota of 13,000 metric tons of beef exports between the two countries annually, allowing British farmers access to the US market for the first time. This is something the UK National Farmers Union (NFU) has campaigned for in Washington for several years.
The UK also agreed to remove its 19% tariff on US ethanol, which will allow the import of up to 1.4 billion liters annually. This influx of foreign produce will likely impact the British alcohol industry, which currently relies on domestic ethanol production.
The US says the deal will create a US$5 billion (£3.8 billion) export opportunity, including US$700m in ethanol and US$250m in other agricultural products.
Despite the UK Prime Minister Keir Starmer hailing the agreement as “historic” and saying the “UK has no greater ally than the United States,” the NFU has expressed concern over what the deal’s details could mean for British farmers.
NFU president Tom Bradshaw says: “Our biggest concern is that two agricultural sectors have been singled out to shoulder the heavy burden of removing tariffs for other industries in the economy.”
“While we understand this, we also know that today is the start, not the end, of a process and UK agriculture cannot continue to shoulder such imbalances in future negotiations.”
Bioethanol impact
The NFU also says the liberalization of the ethanol market could cause farmers to lose profits, as the domestic market balances supply and demand and produces up to one million tons of animal feed as a by-product.
“Including a significant volume of bioethanol in the deal raises concerns for British arable farmers. We are working through what this means for the viability of the domestic bioethanol production and therefore the potential impact on our members,” Bradshaw says.
Food standards concerns continue
The British government previously pledged not to allow American meat products that are treated with hormones or washed in chlorine – practices illegal for UK producers – into the country, saying food standards remain a “red line” in the negotiations.
While the government promised to uphold these standards yesterday, some quarters of the farming industry are concerned that tariff-free access for US farmers could mean substandard meat products do enter the British market, as it will be difficult to ensure which products are allowed in.
Bradshaw says he appreciated “the government’s efforts in listening to our concerns, particularly around maintaining high standards, protecting sensitive agricultural sectors and securing reciprocal access for beef.”
The British Poultry Council (BPC) welcomes the news that poultry will not be included in the agreement. BPC chief executive, Richard Griffiths, says: “This is the right call made for the right reason. Excluding chicken from a UK-US trade deal demonstrates a commitment to the responsibility and transparency that defines British poultry meat production.”
US agriculture secretary Brooke Rollins adds: “Specific to the beef, this is going to increase our beef exports exponentially. And to be very clear, American beef is the safest, the best quality, and the crown jewel of American agriculture for the world.”
