UK reduces import tariffs on everyday essentials in a bid to boost growth

The Department for Business and Trade (DBT) stated that the UK Global Tariff will face a temporary suspension for 89 products

The United Kingdom (UK) on Sunday revealed a reduction in import tariffs aimed at lowering the prices of various foreign products, including daily essentials like pasta, fruit juices, and spices, as part of efforts to stimulate economic growth.

 

The UK Department for Business and Trade (DBT) stated that the UK Global Tariff would face a temporary suspension for 89 products, potentially saving UK companies approximately GBP 17 million annually.

 

Recently, Nirmala Sitharaman engaged in extensive discussions with her British counterpart to inject further momentum into the ongoing negotiations for a bilateral Free Trade Agreement (FTA) between India and the UK.

 

 

Amid US President Donald Trump’s tariff hikes, the DBT explained that the decision was made to pause import duties on a broad selection of products to help lower costs for businesses, offering zero tariffs until July 2027.

 

During a White House event on April 3 dubbed “Liberation Day”, President Trump unveiled sweeping tariffs that directly impacted key trading partners, including the United Kingdom. These measures imposed steep duties on imports to protect the US’ domestic industries and counter unfair trade practices.

 

On April 9, the Trump administration extended the tariff framework to all countries—including the UK—by suspending the higher rates for a period of 90 days. This extension was intended to provide additional time for diplomatic negotiations and strategic recalibrations amid mounting global trade tensions.

 

“Free and open trade grows economies, lowers prices and helps businesses to sell to the world, which is why we’re cutting tariffs on a range of products,” stated UK Business and Trade Secretary Jonathan Reynolds.

 

These tariff cuts will aid the growth of crucial industries like advanced manufacturing and clean energy, enhancing their ability to compete globally while backing the government’s industrial strategy through the “Plan for Change”.

 

“From food to furniture, this will reduce the cost of everyday items for businesses, with savings hopefully passed on to consumers. As we face a new era of global trade, this government is going further, faster to make Britain the best country to do business, delivering on our Plan for Change,” Reynolds added.

 

The government also emphasised its accelerated pace in negotiating trade agreements with partners like India, the Gulf Cooperation Council, South Korea, and Switzerland, aiming to unlock business opportunities and enhance job creation and growth.

 

“In a changing world, we know families are anxious about the cost of living, and businesses uncertain about their future. That’s why we’ve announced lower prices on imports of everyday essentials, helping businesses to thrive and pass on savings to customers,” remarked UK Chancellor Rachel Reeves.

 

“In the face of an uncertain and unpredictable global trading environment, the government should be commended for suspending import duties on an array of products,” commented Sean McGuire, director at the Confederation of British Industry (CBI).

 

“Measures like these will be important for reducing the financial pressures on firms and help to drive growth for businesses of all sizes across the country,” McGuire added.

 

The DBT indicated that the cost savings for businesses on items such as pasta, fruit juices, coconut oil, and pine nuts could potentially be transferred to consumers right before the summer season, suggesting lower food costs in supermarkets, restaurants, and pubs.

 

Goods like agave syrup, frequently used in margaritas, and plant bulbs will also have tariffs removed, implying that avid cocktail makers and amateur gardeners might see reduced costs as warmer weather nears, the DBT added.