The UK government has suspended import tariffs on 89 products, including everyday food and drink such as pasta, juice, spices and agave syrup. The temporary tariff suspension will last until July 2027 and is expected to save UK businesses at least £17 million per year.
The move is aimed at reducing costs for businesses and lowering prices for consumers. It is part of the UK government’s wider “Plan for Change” to boost economic growth and support UK industries.
Tariff changes expected to ease pressure on food and drink companies
British Business and Trade Secretary Jonathan Reynolds said the reforms will make the UK a better place to do business. “Free and open trade boosts economic growth, lowers prices and helps businesses go global,” he explained.
In addition, the removal of import tariffs comes at a time when British families are facing pressure from rising living costs. Chancellor of the Exchequer Rachel Reeves noted that the decision will help businesses pass on the savings to consumers.
The tariff cuts cover key ingredients used in the food and drink industry, including coconut oil, pine nuts and agave syrup, a common cocktail sweetener. Other products such as plywood and plastics are essential to the manufacturing and construction sectors.
Food and drink industry is a major beneficiary
The new measures apply to goods that are not eligible for tariff reductions under existing trade agreements. Therefore, companies can apply for a suspension of tariffs by demonstrating how the changes will benefit their industry and the wider economy.
Industry bodies welcomed the move. For example, Sean McGuire, director of European affairs at the Confederation of British Industry, said the suspension would reduce financial pressure on businesses and support growth across the UK.
In addition, the UK government is negotiating new trade agreements with India, the Gulf Cooperation Council, South Korea and Switzerland. These agreements are aimed at opening up new markets and reducing costs for UK businesses.
The food and drink industry is expected to benefit directly from these changes. For example, the reduction in the cost of imported raw materials may help manufacturers keep prices stable despite continued challenges in global supply chains.
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