{"id":22427,"date":"2025-05-09T09:55:32","date_gmt":"2025-05-09T09:55:32","guid":{"rendered":"https:\/\/www.selinawamucii.com\/news\/?p=22427"},"modified":"2025-05-09T09:56:26","modified_gmt":"2025-05-09T09:56:26","slug":"u-s-uk-trade-deal-creates-5-billion-market-for-american-farmers","status":"publish","type":"post","link":"https:\/\/www.selinawamucii.com\/news\/2025\/05\/09\/u-s-uk-trade-deal-creates-5-billion-market-for-american-farmers\/","title":{"rendered":"U.S.-UK trade deal creates $5 billion market for American farmers"},"content":{"rendered":"\n<p>An era-defining U.S.-UK trade deal on May 8, 2025 could bring American farmers $5 billion.\u00a0<\/p>\n\n\n\n<p>Echoing a landmark&nbsp;<a href=\"https:\/\/www.selinawamucii.com\/news\/2025\/05\/07\/lamb-for-prawns-monumental-india-uk-trade-deal-dawns\/\"><u>UK-India pact<\/u><\/a>, the agreement happened on Victory in Europe (VE) Day, which commemorates the Allied WWII victory.&nbsp;<\/p>\n\n\n\n<p>In a White House statement, the U.S. President Donald Trump said that \u201c<a href=\"https:\/\/www.whitehouse.gov\/fact-sheets\/2025\/05\/fact-sheet-u-s-uk-reach-historic-trade-deal\/\"><u>the deal includes billions of dollars&#8230;especially in agriculture<\/u><\/a>.\u201d<\/p>\n\n\n\n<p>While the concession concentrates on steel, vehicles and aerospace components from the UK., agriculture enjoys key trade offs.<\/p>\n\n\n\n<p>For one, the United States will boost its ethanol export value to $700 million, targeting Britain\u2019s rising biofuel utility.<\/p>\n\n\n\n<p>Farmers in the UK are however viewing the increase of biofuel imports as a threat to their arable crops. They also feel that agriculture is becoming a lever for shouldering the burdens of other tariff-hit industries.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-beef-s-red-line\"><strong>Beef\u2019s Red Line<\/strong><strong><\/strong><\/h3>\n\n\n\n<p>Beef and other agricultural goods will make up a joint $250 million in new export opportunities for the American side.<\/p>\n\n\n\n<p>The UK will benefit from a&nbsp;<a href=\"https:\/\/www.agdaily.com\/news\/us-uk-announce-agriculture-trade-deal\/\"><u>13,000-tonne<\/u><\/a>&nbsp;quota of tariff-free American beef imports, mirroring ethanol.&nbsp;<\/p>\n\n\n\n<p>However, the UK will maintain a red line on hormone-treated trans-Atlantic beef, per the&nbsp;<a href=\"https:\/\/www.standard.co.uk\/news\/politics\/uk-government-keir-starmer-government-donald-trump-agriculture-b1226691.html\"><u>Evening Standard<\/u><\/a>.<\/p>\n\n\n\n<p>Downing Street has also won a reciprocal beef export allowance to the U.S. after many years of trying.&nbsp;<\/p>\n\n\n\n<p>Duty scrapping will add $5 billion to all U.S.\u2019 exports to the UK, which stood at $148 billion in 2024.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-10-tariff\"><strong>10% Tariff<\/strong><strong><\/strong><\/h3>\n\n\n\n<p>Although the new concession is mutually agreeable, certain goods will still retain a tariff line of 10%.&nbsp;<\/p>\n\n\n\n<p>The UK applies an average 9.2% on American agricultural imports while its partner doubled the tariff to 10% on April 2.<\/p>\n\n\n\n<p>There are also tariffs that the U.S. terms as unfair. These include the 125% duty the UK applies on outbound red meat and dairy products.&nbsp;<\/p>\n\n\n\n<p>It was to redress this \u201cunfairness\u201d that Washington on April 2 enforced 10% tariffs, worldwide.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-iowa-s-trade-deal\"><strong>Iowa\u2019s Trade Deal<\/strong><strong><\/strong><\/h3>\n\n\n\n<p>Tariffs aside, the federal food basket, Iowa, is celebrating the trade pact for it favors the state\u2019s ethanol industry. &nbsp;<\/p>\n\n\n\n<p>Senators from the state including Joni Ernst applauded the President on X for creating&nbsp;<a href=\"https:\/\/www.msn.com\/en-us\/news\/politics\/ernst-and-hinson-praise-trumps-uk-trade-deal-for-boosting-iowa-agriculture\/ar-AA1EqtSk?ocid=BingNewsVerp\"><u>new markets for Iowa.<\/u><\/a>&nbsp;<\/p>\n\n\n\n<p>Could the U.S.-UK trade deal reduce the huge agricultural trade deficit facing the U.S.? The statistics below indirectly answer this question by examining historical agri-food exports by the U.S. to the UK.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-u-s-uk-ag-trade-statistics\"><strong>U.S.-UK Ag Trade Statistics&nbsp;<\/strong><strong><\/strong><\/h2>\n\n\n\n<p>The United States courts an Ag trade deficit of $49 billion in 2025. Thus, a major deal with the UK comes opportunely. &nbsp;In 2024, the UK imported&nbsp;<a href=\"https:\/\/www.agdaily.com\/news\/us-uk-announce-agriculture-trade-deal\/\"><u>$2.18 billion<\/u><\/a>&nbsp;worth of farm goods from the U.S., the 13<sup>th<\/sup>&nbsp;biggest of any country.&nbsp;<\/p>\n\n\n\n<p>Trade in numbers:<\/p>\n\n\n\n<p><em>Average UK ag imports from the U.S<\/em>.:&nbsp;<a href=\"https:\/\/www.fas.usda.gov\/regions\/united-kingdom\"><u>$1.97 billion<\/u><\/a>&nbsp;annually, between 2021 and 2023.<\/p>\n\n\n\n<p><em>Growth rate of the UK market for American Ag goods<\/em>:&nbsp;<a href=\"https:\/\/www.fas.usda.gov\/regions\/united-kingdom\"><u>0.87%<\/u><\/a>&nbsp;between 2015 and 2024.<\/p>\n\n\n\n<p><em>Leading UK agricultural imports from the U.S<\/em>.: ethanol, tree nuts, wine, spirits and food preparations. The following table, courtesy of the&nbsp;<a href=\"https:\/\/www.fas.usda.gov\/regions\/united-kingdom\"><u>U.S. Department of Agriculture<\/u><\/a>, illustrates the data.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>U.S.\u2019 Ag Produce\/Product&nbsp;<\/strong><strong><\/strong><\/td><td><strong>Total UK Import Value [[2015-24 annual average]<\/strong><strong><\/strong><\/td><td><strong>Tonnage [Tonnes]<\/strong><strong><\/strong><\/td><\/tr><tr><td>Food preparations&nbsp;<\/td><td>$100,800,000<\/td><td>7,865<\/td><\/tr><tr><td>Spirits from distillation<\/td><td>$137,060,000<\/td><td>&#8211;<\/td><\/tr><tr><td>Wines&nbsp;and related<\/td><td>$163,810,000<\/td><td>&#8211;<\/td><\/tr><tr><td>Tree nuts<\/td><td>$202,440,000<\/td><td>36,627<\/td><\/tr><tr><td>Ethanol<\/td><td>$535,120,000<\/td><td>&#8211;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Have all Ag exports from the U.S. to the UK grow<\/strong><strong>n<\/strong><strong>&nbsp;in the past decade<\/strong>?&nbsp;<\/p>\n\n\n\n<p>Only ethanol exports to the UK at 151,270% growth rate improved in the 2015-24 period, among American agricultural goods. All the rest averaged negative growth of between -2% for tree nuts at the highest and -42% for wine at the lowest.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>An era-defining U.S.-UK trade deal on May 8, 2025 could bring American farmers $5 billion.\u00a0 Echoing a landmark&nbsp;UK-India pact, the agreement happened on Victory in Europe (VE) Day, which commemorates the Allied WWII victory.&nbsp; In a White House statement, the U.S. President Donald Trump said that \u201cthe deal includes billions of dollars&#8230;especially in agriculture.\u201d While&#8230;<\/p>\n","protected":false},"author":3,"featured_media":22428,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v16.3 (Yoast SEO v20.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>U.S.-UK trade deal creates $5 billion market for American farmers - Selina Wamucii | Food &amp; 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