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The Guardian
30-06-2025
- Automotive
- The Guardian
Shiploads of cars ready to set sail for US from UK as trade deal kicks in
Shiploads of Minis, Aston Martins and Range Rovers will set sail for the US on Monday as the UK-US trade deal kicks in, but British farmers say they have been used as collateral to save the car industry. Auto shipments across the Atlantic were down more than half in May after Donald Trump's imposition of a 25% tariff on 3 April on top of an existing 2.5% levy. However, as of one minute past midnight US time on Monday – 5am in the UK – that has been reduced to 10% for cars, and UK manufacturers expect pent-up demand to be unleashed. Aston Martin's chief executive, Adrian Hallmark, said the luxury carmaker had stopped shipping between April and June, something he said had been 'not catastrophic, but slightly uncomfortable'. The outline of the trade deal was agreed between Trump and Keir Starmer in early May, the first such bilateral pact to mitigate the president's import taxes. However, delays in agreeing the fine print meant the higher tariff had continued to apply, pushing the cost of British cars up by more than a quarter for US importers. Hallmark told a British car industry conference last week that he was 'planning to invoice three months' worth of sales in a 24-hour period', with stocks in the US down by 50% due to the pause. Aston Martin exports 90% of its cars, but its customers are wealthy and were willing to wait. 'The demand has been strong and will be in good shape when we start to invoice cars like fury on Monday next week,' he said. On the eve of the trade deal coming into force, the business secretary, Jonathan Reynolds, received reassurances from the sportscar maker Lotus that it had no plans to close its UK factory, in Hethel, Norfolk. Reynolds contacted Lotus bosses after it emerged that the carmaker was considering shifting production to the US – a move that would jeopardise 1,300 jobs. A Department for Business and Trade spokesperson said Reynolds met Lotus and its owner, Geely, on Sunday to clarify the company's situation, and 'was reassured by management that they are committed to their UK operations and have no plans to close their Hethel plant'. A decision to relocate manufacturing abroad by a prestige brand such as Lotus would be embarrassing for the UK government. Labour's industrial strategy, published last week, singled out automotive production as among the strategic sectors it wants to support. The car industry welcomed the US-UK trade deal when it was struck, with it preventing job losses at JLR, the maker of the Jaguar and Land Rover brands. Range Rovers are particularly popular in the US. However, the lower 10% duty only applies to a quota of 100,000 cars a year – slightly below last year's export numbers – leaving little room for growth. JLR alone exported 84,000 cars in the year up to April 2025. The initial trade deal also included a promise of zero tariffs on steel but this has been held up by negotiations over the origin of some raw materials for smelting, particularly at Tata's plant at Port Talbot in south Wales. Concessions were won with new tariff-free quotas for British and US beef in each other's markets, as well the controversial removal of a 19% tariff on American ethanol imports, which the UK industry says leaves biofuel plants facing closure. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion The president of the National Farmers' Union, Tom Bradshaw, said the government must stop using agriculture as a bargaining chip in talks and urged Starmer to take the sector off the table in the talks on steel and remove the 10% baseline tariff Trump has applied to all imports. 'Agriculture has borne the responsibility of removing tariffs for other sectors. At some point they've got to stop relying on agriculture to take the burden,' Bradshaw said. 'Agriculture has nothing left to give.' On the upside for farmers, they can now sell 13,000 tonnes of British beef to the US, but again there is a catch. They will not be able to sell until January next year because beef is part of a wider tariff deal with other countries, and this year's quota has already been filled by Brazilians who stockpile beef in storage near the Mexican border. The UK steel industry has at least won a temporary exemption from the 50% tariff imposed by Trump at the start of this month until 9 July, but it still faces a 25% tariff on exports. It is waiting anxiously for delivery of the promised zero rate tariff. 'Time is running out to secure a UK-US steel deal and remove damaging tariffs,' said Gareth Stace, the director general of UK Steel. 'Every day of delay costs our steelmakers dearly. Contracts are being lost, investment decisions remain on hold, and uncertainty is paralysing business decisions. We urgently need a swift, positive resolution to these talks to protect jobs, unlock growth, and restore confidence in the sector.' Yet even in a zero-tariff deal, Port Talbot may still face issues. The UK operations of the Indian conglomerate are relying on imports of steel melted and poured in its sister plants in India and the Netherlands while they move from a polluting blast furnace to the greener electric arc furnace to smelt steel. However, UK Steel is hoping there can be an exception to the tariffs agreed for the Welsh operation along with the five other plants in the UK. UK trade officials are understood to be optimistic they can secure such an exemption.
The Guardian
30-06-2025
- Automotive
- The Guardian
Shiploads of cars ready to set sail for US from UK as trade deal kicks in
Shiploads of Minis, Aston Martins and Range Rovers will set sail for the US on Monday as the UK-US trade deal kicks in, but British farmers say they have been used as collateral to save the car industry. Auto shipments across the Atlantic were down more than half in May after Donald Trump's imposition of a 25% tariff on 3 April on top of an existing 2.5% levy. However, as of one minute past midnight US time on Monday – 5am in the UK – that has been reduced to 10% for cars, and UK manufacturers expect pent-up demand to be unleashed. Aston Martin's chief executive, Adrian Hallmark, said the luxury carmaker had stopped shipping between April and June, something he said had been 'not catastrophic, but slightly uncomfortable'. The outline of the trade deal was agreed between Trump and Keir Starmer in early May, the first such bilateral pact to mitigate the president's import taxes. However, delays in agreeing the fine print meant the higher tariff had continued to apply, pushing the cost of British cars up by more than a quarter for US importers. Hallmark told a British car industry conference last week that he was 'planning to invoice three months' worth of sales in a 24-hour period', with stocks in the US down by 50% due to the pause. Aston Martin exports 90% of its cars, but its customers are wealthy and were willing to wait. 'The demand has been strong and will be in good shape when we start to invoice cars like fury on Monday next week,' he said. On the eve of the trade deal coming into force, the business secretary, Jonathan Reynolds, received reassurances from the sportscar maker Lotus that it had no plans to close its UK factory, in Hethel, Norfolk. Reynolds contacted Lotus bosses after it emerged that the carmaker was considering shifting production to the US – a move that would jeopardise 1,300 jobs. A Department for Business and Trade spokesperson said Reynolds met Lotus and its owner, Geely, on Sunday to clarify the company's situation, and 'was reassured by management that they are committed to their UK operations and have no plans to close their Hethel plant'. A decision to relocate manufacturing abroad by a prestige brand such as Lotus would be embarrassing for the UK government. Labour's industrial strategy, published last week, singled out automotive production as among the strategic sectors it wants to support. The car industry welcomed the US-UK trade deal when it was struck, with it preventing job losses at JLR, the maker of the Jaguar and Land Rover brands. Range Rovers are particularly popular in the US. However, the lower 10% duty only applies to a quota of 100,000 cars a year – slightly below last year's export numbers – leaving little room for growth. JLR alone exported 84,000 cars in the year up to April 2025. The initial trade deal also included a promise of zero tariffs on steel but this has been held up by negotiations over the origin of some raw materials for smelting, particularly at Tata's plant at Port Talbot in south Wales. Concessions were won with new tariff-free quotas for British and US beef in each other's markets, as well the controversial removal of a 19% tariff on American ethanol imports, which the UK industry says leaves biofuel plants facing closure. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion The president of the National Farmers' Union, Tom Bradshaw, said the government must stop using agriculture as a bargaining chip in talks and urged Starmer to take the sector off the table in the talks on steel and remove the 10% baseline tariff Trump has applied to all imports. 'Agriculture has borne the responsibility of removing tariffs for other sectors. At some point they've got to stop relying on agriculture to take the burden,' Bradshaw said. 'Agriculture has nothing left to give.' On the upside for farmers, they can now sell 13,000 tonnes of British beef to the US, but again there is a catch. They will not be able to sell until January next year because beef is part of a wider tariff deal with other countries, and this year's quota has already been filled by Brazilians who stockpile beef in storage near the Mexican border. The UK steel industry has at least won a temporary exemption from the 50% tariff imposed by Trump at the start of this month until 9 July, but it still faces a 25% tariff on exports. It is waiting anxiously for delivery of the promised zero rate tariff. 'Time is running out to secure a UK-US steel deal and remove damaging tariffs,' said Gareth Stace, the director general of UK Steel. 'Every day of delay costs our steelmakers dearly. Contracts are being lost, investment decisions remain on hold, and uncertainty is paralysing business decisions. We urgently need a swift, positive resolution to these talks to protect jobs, unlock growth, and restore confidence in the sector.' Yet even in a zero-tariff deal, Port Talbot may still face issues. The UK operations of the Indian conglomerate are relying on imports of steel melted and poured in its sister plants in India and the Netherlands while they move from a polluting blast furnace to the greener electric arc furnace to smelt steel. However, UK Steel is hoping there can be an exception to the tariffs agreed for the Welsh operation along with the five other plants in the UK. UK trade officials are understood to be optimistic they can secure such an exemption.
Telegraph
27-06-2025
- Business
- Telegraph
‘Big four' supermarkets accused of failing to back British farmers
Supermarkets have been accused of failing to back British farmers after trade deals triggered a surge in imports of meat from Australia and New Zealand. Livestock farmers said the 'big four' retailers are putting them at a disadvantage by selling imported beef and lamb alongside British produce at a time when the domestic agriculture industry is struggling. David Barton, a Cotswolds-based beef farmer and chairman of the National Farmers' Union (NFU) livestock board, said: 'It is disappointing, because what we're looking for as an industry is to grow production. We need confidence, and when supermarkets start messing around like this, it really doesn't fill us with confidence.' Most of the major supermarkets have made commitments to selling British beef and supporting domestic farmers. However, customers and farmers alike have noticed that meat from much further afield has begun appearing more frequently on shelves. Examples include a New Zealand-sourced Wagyu burger in Sainsbury's, Australian and New Zealand beef products in Morrisons, and a Uruguayan steak sold in Asda. After spotting a steak listing its sourcing as 'Australian or British', the Liberal Democrat MP Tim Farron posted on X: 'This is appalling from Morrisons. They seek kudos for their UK sourcing but then sneakily do this, undermining British farmers and undermining their own integrity and brand.' Tesco also sells 300g lamb leg steaks that are 'produced in the UK or New Zealand'. A person familiar with the situation said the supermarket had not changed its sourcing policy. The outcry comes in the wake of British trade deals signed with Australia and New Zealand after Brexit, which have led to a surge in imports of meat from the two countries. Imports of fresh, chilled and frozen beef from Australia and New Zealand soared in 2024 after the trade deals came into effect. Meanwhile, imports of lamb from the two countries – which already supplied a significant proportion of the UK market – rose by 87pc and 26pc, respectively, last year. Neil Shand, the chief executive of the National Beef Association (NBA), said: 'We are not self sufficient on beef, so we have to accept imported beef into the UK every year to a degree. And as our self sufficiency drops and our food security weakens, we're having to accept more. 'What I don't like is when retailers put it on a shelf at a far reduced price from ours. If you price something at a cheaper price, you'll drive growth in that area, and it will have an even deeper impact on British production.' Supermarkets are currently embroiled in a price war as they battle to defend their market share at a time when living costs are putting pressure on consumers. British farmers are grappling with a cattle shortage that has pushed the price of beef to record highs this year. Sarah Godwin, a dairy and egg farmer, said: 'Partly cost has led supermarkets to look in other directions, but I think they were always being encouraged to do so now with these trade deals.' Mr Barton said: 'If we don't give the UK producer the confidence to continue to produce and produce more, the situation just gets worse and worse. To have a secure supply chain, it's better to start at home and make sure you look after that.' Andrew Opie, of the British Retail Consortium (BRC), said: 'Given the pressure on British farmers at the moment, retailers are paying more for their produce. 'However, retailers are also facing additional costs and are working incredibly hard to limit price increases for consumers where many are struggling to afford the essentials.' Jake Pickering, of Waitrose, said it was 'sad to see other supermarkets shift away from home grown beef' and that it had 'no intention of following suit'. Discount retailer Lidl reaffirmed a commitment to British beef this week, saying it would not import or switch sourcing to any suppliers outside of the country. An Asda spokesman said: 'We always look to offer customers a wide choice of products to suit all budgets. These steaks were provided by a branded partner and were available in our stores for a limited time only. All of Asda's own brand fresh beef continues to be sourced from farms in the UK and Republic of Ireland.' A Morrisons spokesman said: 'Morrisons remains 100pc British on all our meat counters. In our aisles - alongside our New Zealand lamb - we are introducing trials of some imported meat from trusted suppliers to help us offer outstanding value through the seasons and through any supply fluctuations.' A Sainsbury's spokesman said: 'We offer two summer premium Wagyu products from New Zealand, which make up just 0.1pc of our total beef range. 'We have an unwavering, long-term commitment to British farming and this has zero impact on our approach or existing partnerships. The country of origin is also clearly labelled to ensure our customers can make informed choices when they shop with us.' While imports from Australia and New Zealand have risen, most supermarkets have ruled out allowing American beef to be sold in Britain amid concerns over standards, despite Sir Keir Starmer agreeing a trade deal with the US earlier this year.
The Guardian
17-06-2025
- Business
- The Guardian
Farmers call for UK animal welfare rules to be upheld in Gulf states deal
A trade deal with Gulf states could severely undermine British farmers by allowing the importation of low-welfare meat, the National Farmers' Union has said in a letter to the prime minister. The UK is close to signing a £1.6bn trade agreement with Gulf states – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates – amid deep dissatisfaction from farming and animal welfare groups over an expected deal for food imports. Human rights groups have also attacked the proposed deal for making no concrete provisions on workers' rights, modern slavery or the environment. Last week, the business secretary, Jonathan Reynolds, said there would be 'chapters in that agreement' on human rights that were not legally binding. 'You don't have that in trade deals, but it's important you have that ethos and that approach reflected,' he said. Farmers groups have told the prime minister, Keir Starmer, that the deal with the Gulf Cooperation Council would go against a commitment he made at the NFU conference to protect high welfare standards, saying that the way most poultry is produced in Gulf states would be illegal in the UK. The Guardian has previously reported that the deal included uncapped access to the UK's poultry market for chicken meat if imports meet UK hygiene standards. However, meeting these checks does not mean meeting UK animal welfare standards. The NFU president, Tom Bradshaw, said: 'Balanced and mutually beneficial trade deals can provide a real economic boost, including for farm businesses. A modern trade deal with the GCC, if fair and balanced, could offer huge potential for agricultural exporters. 'But, as always, this balance depends on the government upholding its commitments to not allow greater market access for food imports which have been produced in ways that are illegal here. This would undermine Britain's reputation for high animal welfare standards that our producers deliver, and consumers value and rightly expect.' He said the trading bloc 'only seems to have basic welfare provisions, which fall well short of the robust species-specific legislation in place in the UK'. 'It's vital the government takes the same balanced approach it took with the recent India and US trade agreements. This is the next test to see if the government will stand strong and protect the standards our country demands and values,' he added. Farmers have minimum standards to reach in terms of space for birds to live in, and there is mandatory pre-slaughter stunning in most cases. In the six Gulf countries involved in the deal, poultry must be slaughtered according to halal principles, though stunning is sometimes used. Poultry is often raised in intensive indoor systems, especially given the region's harsh heat. The UK has some of the strictest standards for chicken space in the world. Poultry farmers must give their flock a minimum of 750 sq cm of space per bird, and 600 sq cm must be usable. The deal, led by the trade minister, Douglas Alexander, is likely to be particularly beneficial for the car industry and financial services, though estimates suggest a free trade agreement would be worth less than 1% of GDP by 2035. Trade with the six-member bloc is worth about £59bn a year, according to UK government estimates, as the UK's seventh-largest export market, with a trade deal expected to increase trade by about 16%.
Telegraph
20-05-2025
- Business
- Telegraph
Starmer's EU deal ‘risks undercutting farmers'
Sir Keir Starmer's EU deal risks undercutting British farmers, rural groups have warned. The UK has secured a veterinary agreement with the bloc in a Swiss-style deal that removes border checks and red tape on agri-food, making it easier to trade with EU countries. Farming groups have cautiously welcomed measures to make it easier to export goods across the border, but warned that it could lead to a flooding of the markets of EU imports. Concerns have also been raised about accepting dynamic alignment on plant and animal health laws, which means growers will be subject to European Court of Justice decisions. Mo Metcalf-Fisher, director of external affairs at Countryside Alliance, warned this could mean 'lower quality' EU imports could crowd out British farmers. 'There are of course benefits to selling more of our fantastic produce abroad and we should seize those opportunities with gusto,' he said. 'But we should avoid a situation where cheaper and lower quality imports flood our markets, undercutting our own farmers and hampering our ability to promote the importance of buying local, seasonal, Great British produce'. The Prime Minister claimed at the UK-EU summit on Monday that the deal will result in 'lower food prices at the checkout' as a result of making trade easier. Last month, Rachel Reeves, the Chancellor, rejected calls to launch a 'Buy British' campaign in response to Donald Trump 's trade war, telling MPs she did not want an 'inward-looking' approach. She added it was up to consumers to decide what to purchase at supermarkets. It comes after a series of unpopular decisions by Labour that affect the farming industry, in particular the scrapping of agricultural property relief (APR). The inheritance tax reform introduced by the Chancellor means agricultural assets worth more than £1 million, which were previously exempt, will be liable to the 20 per cent tax. Tom Bradshaw, president of the National Farmers' Union, told the farming minister on Tuesday at the Future Countryside conference 'the last 10 months have led to a challenging environment' for the sector. Daniel Zeichner said: 'I appreciate how painful and difficult that has been. 'I can probably share with you that it hasn't been the easiest time for me either, because that wasn't the way in which I wanted our relationship to start in Government. 'But again, I have to say that Treasury colleagues were faced with a range of very, very difficult choices in terms of economic inheritance.' The measure has prompted accusations that Labour does not understand rural communities, a sentiment that had doubled among voters in the six months since the general election. The deal announced on Monday was welcomed by some farming groups, who have long pushed for a relaxing of red tape when trading with the EU. The Sanitary and Phytosanitary agreement agreed by the Government is expected to shorten waiting times for trucks carrying fresh produce across the border. Some routine checks on plant and animal products will be removed and British burgers and sausages will once more be allowed into the EU. Ian Rickman, president of the Farmers' Union of Wales, said the new agreement should 'open the door to ensuring that both food imports and exports are subject to similar controls which provides a level playing field between UK and EU producers'. But he added: 'Whilst at face value our plant and animal health requirements align with EU standards, we must consider how this may place the UK in a challenging position in future as it no longer has the power, as a formal Member State, to influence European rules and will have to accept the EU's Court of Justice's jurisdiction on the way they are applied.'
