UK Food and Drink Exports to US Rise Despite Tariffs

What's Happening?

The UK food and drink export volumes have shown a significant rebound in the first half of 2025, with notable growth in exports to the US despite the imposition of additional tariffs. According to the Food and Drink Federation (FDF), total export volumes increased by 7.2% to 4.5 billion kilograms, with a 6.8% rise in value terms to £12.4 billion. Exports to the US saw an 18.9% increase to £1.4 billion, reflecting the UK's competitive advantage in certain food and drink categories. The FDF has highlighted the need for government and industry collaboration to further boost export growth, particularly in light of ongoing tariff challenges.

Why It's Important?

The increase in UK food and drink exports to the US is significant as it demonstrates resilience in the face of trade barriers. The growth in exports can potentially strengthen economic ties between the UK and the US, providing opportunities for UK suppliers to fill supply gaps in the US market. However, the presence of tariffs continues to pose challenges, impacting competitiveness against EU counterparts. The situation underscores the importance of strategic trade agreements and government support to mitigate tariff impacts and enhance market access.

What's Next?

The FDF has called for efforts to secure better tariff rates on products where UK tariffs are higher than those of EU competitors. There is potential for further growth through strategic trade agreements, such as the UK-India free trade agreement, which could reduce tariffs and accelerate export growth. The FDF also emphasizes the need for a comprehensive trade pact with the Gulf Cooperation Council and a new sanitary and phytosanitary agreement with the EU to reduce border friction and costly checks.

Beyond the Headlines

The ongoing tariff situation highlights broader trade policy challenges and the need for strategic international partnerships. The UK's ability to navigate these challenges and secure favorable trade agreements could have long-term implications for its global trade position. Additionally, the focus on reducing tariffs and enhancing market access aligns with broader economic goals of boosting exports and supporting domestic industries.