Bitter Aftertaste: UK Food and Drink Industry Hit by New 10% US Tariff

The UK's food and beverage industry is bracing for significant disruption following the United States' announcement of a 10% tariff on British imports, including iconic products such as Scotch whisky, biscuits, and tea.

The move, introduced under former President Donald Trump's renewed economic strategy, has sparked concern across the UK's export community. With the US accounting for approximately 10% of British food and drink exports, the new levy poses a substantial threat to growth and competitiveness in one of the UK's most valuable trading relationships. 

Scotch Whisky Under Threat

Among the most affected is the Scotch whisky sector, with exports to the United States valued at £971 million in 2024. The Scotch Whisky Association (SWA) expressed disappointment over the reintroduction of tariffs, warning it may undo recent progress made following the lifting of previous duties in 2021. 

A spokesperson for the SWA commented: "Our sector has only recently recovered from the last round of tariffs. A fresh 10% duty on our products jeopardises jobs, investment, and our long-standing trading relationship with the US."

Wider Impact on UK Food and Drink

The Food and Drink Federation (FDF) has echoed concerns, noting that the added cost burden will harm UK producers' competitiveness and raise prices for US consumers. Products likely to be affected include tea, confectionery, bakery goods, and preserves—all key components of the UK's global food offer.

An FDF representative stated: "This tariff is damaging to our exporters and risks stalling the momentum we've built in international markets. We urge the UK Government to act swiftly to safeguard our sector."

Government Engaged in Diplomatic Talks

Prime Minister Keir Starmer has responded by urging industry leaders to remain calm and confirmed that the UK Government is in active dialogue with the United States to de-escalate tensions and seek resolution. 

The Prime Minister stated: "We will continue to champion British industry and ensure that the UK's economic interests are protected on the global stage."

A Call for Action

Trade analysts and industry bodies alike are calling for urgent measures to support affected businesses, particularly in rural regions where food and drink exports underpin local economies. The UK's food and drink industry contributed over £45 billion to the national economy in 2024, and stakeholders warn that prolonged disruption could have far-reaching consequences. 

Sources:

• ITV News. "Which UK industries are most likely to be affected by Trump's tariffs?" 2 April 2025. Link
  
  

• The Telegraph. "How will Trump's tariffs affect the UK? And how Starmer could respond." 1 April 2025. Link

The Guardian. "UK ministers will respond to US tariffs with 'calm heads', Starmer tells business chiefs." 3 April 2025. Link