Chancellor Rachel Reeves has issued a strong warning to UK ministers regarding the potential dilution of British food standards in ongoing trade negotiations with the United States. The UK is seeking to reduce tariffs on American car imports in order to reach an agreement. At the same time, Reeves doubled down on the country’s commitment to maintaining very strict agricultural import barriers (particularly for raising livestock).
In particular, the US is urging further loosening of rules that cover its agricultural exports. This involves lobbying on behalf of beef from cattle raised on growth hormones. The UK, too, has banned the use of such hormones since the 1980s. Reeves reiterated the importance of these standards remaining permanent. “The US administration respects and understands that we have high standards to support British farming and to support British consumers, and we’re not going to be relaxing those standards,” she stated.
In her statements after the event, Reeves said that there is still hope for an agreement on an appropriations deal to be negotiated. She mentioned that the UK may want to go lower on US autobarrier tariffs than other obligations in a deal. President Donald Trump has already enacted a 25% tariff on all UK car imports. This remains a major and very popular decision that has greatly changed the disposition of trade. The US is proposing the elimination of tariffs on UK car imports, which now stand at 10%, down to 2.5%. This modification would produce substantial benefits for both nations.
Reeves had placed an emphasis on bringing down non-tariff barriers, as well as tariff barriers, between the UK and US. “We are willing to reduce trade barriers in the UK, those trade barriers that do exist. And we want to build on the relationship that we have,” she remarked during a recent press briefing.
The UK is currently lobbying to negotiate an elimination of the wider 10% tariff rate. This is the rate that US trade policy is currently enforcing. This would mean the government doing some serious negotiating to ensure that any concessions don’t come at the expense of British standards. The Chancellor noted that “there is a deal there to be done between the UK and the US,” suggesting optimism about reaching an agreement.
The UK Trade Remedies Authority (TRA) is preparing for the onslaught. Specifically, they plan to spend more time and effort helping companies report OTMs and UTPs. This latest scheme is designed to protect UK retailers. It forms part of a much wider review aimed at keeping them safe from being undermined by low quality imports which have hurt the High Street.
Reeves addressed concerns about how international trade dynamics have impacted communities. He pointedly drew out the national security risks in his recent trip to China, which just imposed a whopping 125% tariff on US goods as the trade war escalates. “I do understand the concerns the US has about countries around the world that run large and persistent trade surpluses with the US,” she acknowledged.
US Vice-President JD Vance expressed confidence in the potential for a trade agreement, stating that there is a “good chance” a deal could be reached with the UK. This sentiment aligns with Reeves’s commitment to securing an agreement that supports British industry, jobs, and consumers.
Despite these signs of progress, negotiations remain ongoing. The UK is in a position to put its economic interests aside and fully place itself on the side of stringent agricultural standards. The results of these negotiations will probably determine the path forward for U.S.— especially for American electric vehicle and battery manufacturers —input.