UK Government cuts import tariffs on key food items

Margarita drinkers could be among the beneficiaries of the cuts, as savings should be passed on to consumers just ahead of Summer. Credit: Shutterstock

The UK Government has suspended import tariffs on 89 products, including everyday food and drink items such as pasta, fruit juices, spices and agave syrup. The temporary suspension, which runs until July 2027, is expected to save UK businesses at least £17 million per year.

This move aims to lower costs for companies and reduce prices for consumers. It forms part of the Government’s wider Plan for Change, which focuses on boosting economic growth and supporting UK industries.

Tariff changes expected to ease pressure on food and drink businesses

Business and Trade Secretary Jonathan Reynolds said the changes would make the UK a better place to do business. “Free and open trade grows economies, lowers prices and helps businesses sell to the world,” he explained.

In addition, the removal of import tariffs comes at a time when families are facing pressure from the rising cost of living. Chancellor Rachel Reeves noted that the decision would help businesses pass on savings to customers.

Items covered by the tariff cut include key ingredients used in the food and beverage sector. These range from coconut oil and pine nuts to agave syrup, a common cocktail sweetener. Other products, such as plywood and plastics, are essential to manufacturing and construction.

Food and drink sector among the key beneficiaries

The new measures apply to goods that do not qualify for lower tariffs under existing trade agreements. As a result, companies can apply for tariff suspensions by showing how the changes would benefit their sector and the wider economy.

Industry bodies have welcomed the move. For example, Sean McGuire, Director for Europe at the CBI, said the suspension would reduce financial pressure on firms and support growth across the UK.

Furthermore, the Government is working on new trade agreements with India, the Gulf Cooperation Council, South Korea and Switzerland. These deals aim to open new markets and lower costs for British businesses.

The food and drink sector is expected to benefit directly from these changes. For instance, lower costs on imported ingredients could help manufacturers maintain stable prices, despite ongoing global supply chain challenges.