THE UK government has announced temporary cuts to import tariffs on nearly 90 products, including items such as pasta, fruit juices and spices. The move is aimed at reducing prices for businesses and boosting economic growth.
The Department for Business and Trade (DBT) said the UK Global Tariff will be suspended on 89 products until July 2027. The changes are expected to save UK businesses around GBP 17 million a year.
“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,” said business and trade secretary Jonathan Reynolds.
“From food to furniture, this will reduce the cost of everyday items for businesses, with savings hopefully passed onto 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,” he added.
The government said it is also working to secure trade deals with partners such as India, the Gulf Cooperation Council, South Korea and Switzerland. It said these efforts are part of a wider plan to create new opportunities for businesses and support job 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,” said chancellor Rachel Reeves.
Earlier this week, Reeves held talks with Indian finance minister Nirmala Sitharaman to support progress on the UK-India Free Trade Agreement (FTA).
The UK Global Tariff applies to goods entering the country that do not receive preferential treatment under a trade agreement.
Businesses can apply for tariff suspensions by providing evidence of the benefits for their sector and the wider economy.
“In the face of an uncertain and unpredictable global trading environment, government should be commended for suspending import duties on an array of products,” said 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,” he added.
The DBT said businesses could pass on savings to customers through lower prices at supermarkets, restaurants and pubs.
Products such as coconut oil, pine nuts, agave syrup and plant bulbs will be included in the tariff cuts.
“Products including agave syrup, often used in margaritas, and plant bulbs will also see tariffs removed, meaning keen cocktail-makers and amateur gardeners could enjoy lowered costs as the warmer weather approaches,” the department said.
“These changes will support key growth sectors such as advanced manufacturing and clean energy to compete with international rivals,” it added.
The latest cuts follow earlier tariff reductions on products such as fruit juices from Peru and vacuum cleaners from Malaysia.
£20bn support for exporters hit by tariffs
The government has also announced a £20 billion support package for exporters, including those affected by new US tariffs, as global markets face disruption from Donald Trump's trade measures.
The finance ministry said the export finance programme will expand to £80 billion, benefiting thousands of UK businesses impacted by tariffs.
Of the new funds, £10 billion will be directed toward firms facing immediate pressure from the tariffs.
Chancellor Rachel Reeves said the move is aimed at helping businesses navigate the current uncertainty. “The world is changing, which is why it is more important than ever to back our world-leading businesses,” she said.
Small businesses will be able to apply for loans of up to £2 million under the package.
(With inputs from agencies)
