Trump Champions UK Trade Deal

OMAHA (DTN) -- Ethanol will see lower tariffs selling into the United Kingdom and other agricultural products such as beef should also see greater market access under a new trade deal with the UK announced by President Donald Trump on Thursday.

At an event in the White House, Trump said leaders in the United Kingdom had agreed to greater market access for $5 billion in overall American exports.

In a fact sheet, the White House detailed greater access for agricultural products that included, "Ethanol, beef, cereals, fruits, vegetables, animal feed, tobacco, soft drinks, shellfish, textiles, chemicals, machinery and more."

The fact sheet said the deal includes more than $700 million in ethanal exports and $250 million more in other agricultural products such as beef. The deal also commits the two countries to work together to expand agricultural market access.

"The deal includes billions of dollars of increased market access for American exports, especially in agriculture, dramatically increasing access for American beef, ethanol, and virtually all of the products produced by our great farmers," Trump said.

Officials on both sides of the Atlantic noted the United Kingdom agreed to a framework, suggesting more specific negotiations will be needed to finalize the deal.

ETHANOL

Under the agreement, the tariff on U.S. ethanol will drop from 19% to zero, Agriculture Secretary Brooke Rollins said at the White House event. The U.S. exported $535 million in ethanol to the U.K. in 2024, according to USDA data, making ethanol the top agricultural export product to the U.K.

As the industry touted the news, representatives in the ethanol industry were looking for more details about how the White House came up with the $700 million figure.

"While we are still awaiting the specific details of the agreement, we are excited about the prospects of expanded market access that will help boost our farm economy, while also delivering lower-cost, cleaner fuel to UK drivers," said Geoff Cooper, president and CEO of the Renewable Fuels Association.

BEEF

Officials also stressed expanded market access for U.S. beef, though the U.S. also will import more beef as a result of the deal.

Touting new expected exports, Trump said, "We're a very big country. We have a lot of beef."

Right now, the U.K. only imports about $32 million in U.S. beef. Rollins said that would change dramatically under the new deal. "This is going to exponentially increase our beef exports. And to be very clear, American beef is the safest, the best quality and the crown jewel of American agriculture for the world."

For decades U.S. beef exports to the U.K. have been limited because the U.K. and European Union have rejected growth hormones.

Reports out of the U.K. detailed that tariffs and import rules would be reduced for beef, though the British government maintains that food standards will not change. The U.S. will grant the U.K. up to 13,000 tons of tariff-free beef access to the United States as well. As of now, the U.S. imports almost no beef from the U.K.

The National Cattlemen's Beef Association (NCBA) also touted the deal as a trade victory. "With this trade deal, President Trump has delivered a tremendous win for American family farmers and ranchers," said NCBA President Buck Wehrbein, a Nebraska cattleman. "For years, American cattle producers have seen the United Kingdom as an ideal partner for trade. Between our countries' shared history, culture, and their desire for high-quality American beef, securing a trade agreement is a natural step forward. Thank you, President Trump, for fighting for American cattle producers."

At the White House event, U.S. Trade Ambassador Jamieson Greer said there will be continued talks with U.K. officials about accepting hormone-treated beef and poultry products that have been rinsed with a chlorinate solution -- a common practice in the U.S. but banned in the UK and Europe.

"We are going to discuss all of these types of issues and obviously the importing country, whether it is us or them, you have got to follow the rules on these types of things. Our point is that the rules need to make sure that they are based on science and that's our expectation," Greer said. "We know the UK believes that too. So, we want to come to an accommodation. We want the consumer of each country to choose what they want."

TRADE NUMBERS

In the big picture, right now the United Kingdom is a minor buyer or seller in U.S. agricultural trade. Effectively the U.K. makes up about 1.5% of all U.S. agricultural trade.

The U.S. exported just under $2.2 billion in agricultural products to the U.K. last year with ethanol being the single highest-selling product.

The U.S. imported $2.7 billion in agricultural products from the United Kingdom in 2024. The lion's share of U.K.'s totals are distilled spirits such as scotch and gin, which top $1.6 billion in sales to the U.S.

OTHER DEALS COMING

Under the U.K. deal, most exports from the United Kingdom outside of a tariff-rate quota will face a 10% tariff, Trump said.

When it comes to autos, Rolls Royce engines and plane parts will come over tariff-free. Overall, actual Rolls Royce, Jaguar and Bentley autos will have a 10% tariff, Trump said.

Trump said the deal opens up the opportunity for other trade agreements to be reached with the European Union and potentially China. Trump said the U.S. will reach a separate trade deal with the European Union.

"We are using tariffs now for our benefit," Trump said.

Talking about China, Trump was optimistic a deal can be reached even if the two countries right now appear to be at a trade standstill.

"We would like to see China open up so we can compete in China," Trump said. He later added, "I do believe they have far more to gain than we do."

TOP US AG EXPORTS TO UK

Ethanol: $535 million

Grains and feeds: $214 million

Tree nuts: $202 million

Oilseeds: $196 million

Wine: $163.8 million

Sugar: $56 million

Livestock products: $95 million

-- Beef: $32 million

-- Bull semen: $18.7 million

-- Horses for breeding: $15 million

-- Pork: $4.6 million

Poultry products: $26 million

Dairy products: $19.5 million

Chris Clayton can be reached at Chris.Clayton@dtn.com

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