**London**: Donald Trump’s second term as US President begins amid trade uncertainties with the UK, focusing on tariffs, agricultural standards, and negotiations that impact UK farming sectors and export markets such as Scotch whisky, as tensions rise over food safety and import regulations.
Donald Trump was inaugurated for his second term as President of the United States on 20 January 2025, marking a renewed period of engagement between the US and the UK against a backdrop of complex and evolving trade relations. As he approaches his first 100 days in office, uncertainties persist concerning tariffs, trade agreements, and implications for UK agriculture.
Mr Trump’s return to the White House has stirred significant interest and questions within the UK, particularly given the Labour Party’s recent return to government under its first Prime Minister in 14 years. The relationship between the Republican president and the new Labour administration is now a key focus, notably regarding how it will influence trade policies affecting UK farming sectors.
Ahead of the inauguration, the US National Farmers Union (NFU) outlined its priorities for the early days of Mr Trump’s presidency. These focused on strengthening the Farm Safety Net by supporting measures to mitigate fluctuations in crop prices and input costs. They also emphasised ensuring competitive markets through the enforcement of antitrust laws and heightened transparency to tackle market concentration issues within the agricultural sector. Advocating for careful and cooperative negotiations, the NFU called on the administration to adopt a measured approach to trade policy.
Despite widespread backing from American farmers during Mr Trump’s initial presidency, apprehensions about tariff increases have persisted. One of the President’s early appointments included Robert F. Kennedy as Secretary of Health and Human Services, with a stated agenda to “make America healthy again”, while Brooke Rollins was named head of the Department of Agriculture.
Tariff threats dominated headlines in the opening weeks of the presidency. Analysts in grain, oilseed, and other commodity markets have closely monitored the situation since January. As concerns over potential tariff announcements grew, the UK government intensified efforts to secure a US-UK trade deal, seeking to safeguard trade flows, particularly given the US’s importance as an export market for products like Scotch whisky.
On 2 April, Mr Trump designated the day as ‘liberation day’ and announced a broad increase in tariffs, imposing a baseline 10% tariff on the UK among other countries. However, the UK’s tariff rates were lower than those applied to many European nations. The announcement triggered significant volatility in global stock markets, although agricultural markets were less affected. UK cheesemaker Barbers’, which exports to the US, reported confidence that its clientele would remain loyal despite recognising tariff costs would need to be passed onto American consumers through higher prices.
Following the initial tariff announcement, Mr Trump suspended tariffs for all nations except China, prompting retaliatory measures from Beijing and escalating a trade war between the two largest economies. The renewed focus on a US-UK trade agreement has revived concerns within the UK agricultural community regarding imports, notably on contentious products such as chlorinated chicken and hormone-treated beef.
Farming groups in the UK have consistently voiced opposition to any relaxation of domestic food standards in pursuit of a trade deal. Meanwhile, Reform UK politicians have faced criticism from farming representatives for supporting the import of chlorinated chicken, provided it is properly labelled.
UK Chancellor Rachel Reeves recently visited the US to meet with her American counterpart, reiterating the government’s firm “red lines” on food standards. Concurrently, US farming organisations and political figures have signalled their strong interest in including agricultural issues within any forthcoming trade negotiations, highlighting the sector’s significance for both economies.
The evolving dynamics between the US and the UK under President Trump’s second term, especially in relation to agricultural trade, remain a critical area of attention for policymakers and industry stakeholders on both sides of the Atlantic.
Source: Noah Wire Services
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