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US Tariffs Hit UK Exports Hard in Late 2025
31 Mar
Summary
- UK food and drink exports to the US dropped significantly in late 2025.
- Tariffs increased product prices, impacting infant formula and whisky.
- Global economic uncertainty and inflation also affect consumer spending.
In the second half of 2025, UK food and drink exports to the United States saw a substantial decrease of 8.6% compared to the previous year. This downturn was primarily attributed to tariffs implemented by the US, which escalated the prices of various British products, including popular items like infant formula and whisky.
The value of British food and drink shipped across the Atlantic fell, contrasting with a nearly 19% rise in the first half of 2025. Industry leaders pointed to a combination of factors, including rising production costs, trade barriers, and the impact of persistent inflation and economic uncertainty on consumer spending in key markets.
Despite the challenges, overall UK food and drink exports experienced a modest increase for the full year 2025, boosted by sales of milk and cheese products. However, volumes remained below pre-Brexit levels, and exports to the EU continued to lag. Looking ahead, a new free-trade agreement with India is expected to provide a boost, with initial signs of growth already apparent.
Exports to India rose 12% in 2025, with further tariff reductions on products like breakfast cereals and chocolate anticipated over the next decade. The ongoing conflict in the Middle East also presented additional complexities by increasing global energy and shipping costs, further complicating international trade for British businesses.
