UK food and drink exports to the US plunge nearly 28%, wiping out most of the bilateral surplus as new US tariffs and post‑Brexit frictions bite
Executive summary: UK food and drink exports to the United States fell by 27.9% in Q1 2026, cutting the bilateral surplus from £359 million to £110 million, a drop of over 69%. The contraction signals that US tariffs and post‑Brexit trade frictions are eroding a key export market for UK producers, threatening revenues, jobs and investment in the sector.
Who is involved: UK food and drink exporters, the Food and Drink Federation (FDF), US trade authorities imposing tariffs, and UK government bodies handling Brexit‑related trade arrangements.
Likely next: If tariffs remain, exporters may seek alternative markets or lobby for relief; otherwise, further declines could prompt UK policymakers to renegotiate trade terms or consider domestic support measures.
According to the Food and Drink Federation, the UK’s food and drink export surplus with the United States fell from £359 million to £110 million in the first quarter of 2026, a drop of over 69%. The decline stems from a 27.9% fall in UK exports to the US and a modest rise in US imports, reflecting the combined impact of newly imposed US tariffs and lingering non‑tariff barriers after Brexit. Analysts warn that unless the trade dispute is resolved, the sector could see further revenue losses and pressure on UK food producers.
Timeline
- — UK food and drink exports fall as US tariffs and Brexit trade friction bites – business live (The Guardian — Business)
Analysis — what this means
Likely next events
- UK food producers exploring EU or Asian markets
- Potential WTO dispute filings
- Quarterly trade data updates showing trend
Sectors affected
- Food and drink manufacturing
- Agricultural exports
- Retail and hospitality supply chains
Regulatory implications
- Review of US‑UK Trade and Cooperation Agreement
- Possible safeguard measures under WTO
- UK consideration of retaliatory tariffs
Historical parallels
- 2018 US steel and aluminum tariffs impacting EU exports
- 2020‑2021 UK‑EU fisheries dispute after Brexit
- 2022 US‑China trade war effects on agricultural exports
Key entities
Sources
- UK food and drink exports fall as US tariffs and Brexit trade friction bites – business live — The Guardian — Business
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