What is the story about?
What's Happening?
The Food and Drink Federation (FDF) has reported a significant rebound in UK food and drink exports during the first half of 2025, with notable growth in shipments to the US. Despite a 10% tariff imposed in April, exports to the US increased by 18.9%, reaching £1.4 billion. Overall, UK food and beverage exports rose by 6.8% in value, totaling £12.4 billion. The FDF attributes this growth to the UK's favorable trade conditions in certain categories compared to other nations. However, the industry body warns that US tariffs will continue to impact exports in the second half of the year and calls for efforts to secure competitive rates on products like chocolate and ice cream.
Why It's Important?
The increase in UK food and drink exports, particularly to the US, highlights the resilience of the industry amid challenging trade conditions. This growth presents opportunities for UK suppliers to fill supply gaps in the US market, potentially boosting the UK's economic performance. However, the ongoing impact of tariffs underscores the need for strategic trade negotiations to ensure competitive access to international markets. The FDF's call for government collaboration to enhance export growth reflects the importance of supportive trade policies in sustaining the industry's momentum.
What's Next?
Looking ahead, the FDF emphasizes the need for government and industry collaboration to capitalize on the current export momentum. This includes negotiating favorable trade agreements and reducing tariffs where possible. The FDF also highlights the potential benefits of a UK-India free trade agreement, expected to reduce tariffs in 2026, and the importance of a comprehensive trade pact with the Gulf Cooperation Council. These efforts aim to sustain and enhance the UK's export growth in the coming years.
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