Following the introduction of 10% tariffs on all UK imports to the US, the government launched a consultation on the impact of potential UK tariffs on US goods. The NFU, having consulted with its members, replied to the government’s call for input stressing the importance of the US as a key source of agricultural inputs used by the farming industry.
In the event of retaliatory tariffs, the UK Government should not target key inputs for the agriculture sector because it would add costs and reduce our ability to produce affordable, safe and nutritious food at a time when business confidence in the sector is already at a record low.
Moreover, we urge the government to be aware of the EU’s position and the effect that EU measures would have on our domestic market. UK imports of key inputs tend to come into the EU first due to the requirement for deep water port infrastructure and established supply chain routes. Therefore, the EU’s tariff strategy will have an impact on our ability to source those products.
There is also the added complexity of imports arriving into Northern Ireland and then moving to GB.
The table below shows the total volume (kg) of UK imports of key agricultural inputs from around the world and from the US, in 2024. The right-hand column details the share of US imports as a percentage of total UK imports.
UK imports (kg) in 2024 |
Total imports |
Imports from the US |
US% |
10 Cereals |
2,824,569,943 |
196,316,735 |
Ìý |
|
2,824,569,943 |
196,316,735 |
7.0 |
12 oilseeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medical plants; straw and fodder |
1,073,785,444 |
169,495,382 |
Ìý |
- 1201 soya beans, whether or not broken
|
1,073,785,444 |
169,495,382 |
15.8 |
23 residues and waste from the food industries; prepared animal fodder |
2,731,571,381 |
478,013,972 |
Ìý |
- 2303 Residues of starch manufacture and similar residues, beet-pulp, bagasse and other waste of sugar manufacture, brewing or distilling dregs and waste, whether or not in the form of pellets
|
624,568,269 |
338,510,475 |
54.2 |
- 2304 Oilcake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soya-bean oil
|
2,107,003,112 |
139,503,497 |
6.6 |
- 2309 Preparations of a kind used in animal feeding
|
103,567,534 |
3,529,069 |
3.4 |
28 Inorganic chemicals: organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes |
276,566,489 |
51,695,817 |
Ìý |
- 2814 Ammonia, anhydrous or in aqueous solution
|
276,566,489 |
51,695,817 |
18.7 |
31 Fertilisers |
3,438,935,341 |
224,576,735 |
6.5 |
- 3101 Animal or vegetable fertilisers, whether or not mixed together or chemically treated; fertilisers produced by the mixing or chemical treatment of animal or vegetable products (excl. those in tablets or similar forms, or in packages with a gross weight
|
63,398,301 |
570,429 |
0.9 |
- 3102 Mineral or chemical nitrogenous fertilisers (excl. those in tablets or similar forms, or in packages with a gross weight of <= 10 kg)
|
2,491,108,739 |
222,946,544 |
8.9 |
- 3103 Mineral or chemical phosphatic fertilisers (excl. those in tablets or similar forms, or in packages with a gross weight of <= 10 kg)
|
73,446,156 |
5,383 |
0.0 |
- 3104 Mineral or chemical potassic fertilisers (excl. those in tablets or similar forms, or in packages with a gross weight of <= 10 kg)
|
348,097,432 |
21,392 |
0.0 |
- 3105 Mineral or chemical fertilisers containing two or three of the fertilising elements nitrogen, phosphorus and potassium; other fertilisers (excl. pure animal or vegetable fertilisers or mineral or chemical nitrogenous, phosphatic or potassic fertiliser.
|
455,024,184 |
1,032,987 |
0.2 |
Source: HMRC
Commodity specific concerns
Soya
Geopolitical instability and unpredictability contribute to greater currency volatility, impacting the price relationship between domestic and global markets. China imports more than 60% of global soyabean exports. Given the tariff escalation between the US and China, the UK will be affected by the global price fluctuations.
Additionally, the UK is increasingly reliant on imports of US soya for monogastric and ruminant animals’ diet. US origin is preferred to Brazilian soya due to the sourcing requirements coming into force as part of the EUDR (EU Deforestation Regulation) and the UKFRC (UK Forest Risk Commodity Regulation). Already, many UK dairy farmers are contractually obliged to source North American soya because it can be verified as deforestation free.
Moreover, imposing retaliatory measures on certain soya products could impact the balance between soyabeans and meal imports which could cause major disruption to the supply of animal feed within the UK. The EU is proposing to tariff soyabeans only (at this stage), which will likely increase demand for soya meal if implemented. Also, substantial quantities of beans have been shipped via Northern Ireland in the past. If the duty is collected at port of arrival, this has the prospect of changing shipping routes and increasing costs.
Replacing soya products in an animal’s diet is not a straightforward process. Firstly, availability of alternative proteins is challenging, with supplies of domestic oilseeds reduced as acreages of OSR (oilseed rape) have dropped in recent years, farmers must look in the short term to import proteins.
The oilseeds complex is very responsive to global price volatility and the price of alternatives will likely increase, pushing up the cost of feed for UK farmers. In addition, rations will be fine-tuned by farm nutritionists to optimise performance, and any changes risk a reduction in productivity. Any changes to an animal’s diet should be done slowly and over time and any immediate interruptions to supply, because of price or availability, can also cause animal health and welfare impacts.
Maize
Maize is commonly used in animal feed, providing energy and fibre. The US is the largest producer of maize globally and, for this crop marketing year, the global maize balance is tight.
Currently, US maize appears to be the best option for UK importers until Brazil’s second harvest becomes available due to ongoing issues in other exporting countries (eg, mycotoxins in Eastern Europe, low harvest in Ukraine, pesticides used in Argentina [Source: Agricultural Industries Confederation]).
Last year, the UK imported maize predominantly from the following countries:
2024 UK imports |
Volume (kg)Ìý |
Value (£) |
Canada |
610,103,925 |
106,862,853 |
Poland |
527,567,567 |
96,706,845 |
EU origin
(HMRC doesn’t record the country of origin of imports that come into Northern Ireland from the EU)
|
349,136,646 |
68,395,232 |
Ukraine |
303,827,897 |
55,858,312 |
France |
228,306,462 |
53,248,824 |
US |
196,636,019 |
37,752,470 |
Bulgaria |
128,077,796 |
25,215,012 |
Romania |
123,081,998 |
23,917,007 |
Argentina |
121,867,352 |
32,669,982 |
Brazil |
48,410,447 |
13,841,072 |
Therefore, there are available alternatives to US imports, but sourcing and price considerations will have to be made if the EU decides to implement its retaliatory tariffs on US imports (including maize) given that EU maize imports represent 31% of EU total production on average. It should also be noted that maize can be substituted with feed wheat in feed rations but, as outlined above for soya, with some considerations on feed formulation and price impact.
Sugar beet pulp
Sugar beet pulp is a by-product of sugar production and is used in animal feed as a source of fibre and energy, particularly for ruminants. American sugar beet pulp represents 54% of total UK imports, making the UK extremely reliant on the US as a supplier.
Molasses
The UK is reliant on imports of US molasses used as a key source of energy in animal feed. In 2024, US molasses imports represented 22% of total UK imports, with Poland being the top supplier ahead of the US. Historically, India has been a key source of molasses but it currently imposes an export ban due to its increased domestic demand (Source: AIC).
Feed additives
The UK relies on the EU, China and the US for imports of feed additives. For instance, for lysine sulphate, an amino acid used in poultry and pig feed to improve growth and health, the EU doesn’t produce enough for its domestic market and has imposed antidumping duties on lysine from China, causing a spike in price.
Therefore, the US market is crucial for the supply of this product. Moreover, similar to other inputs, the UK generally imports liquid lysine from the US through the EU, where it gets redistributed. This product is on the suspended EU retaliatory list, adding jeopardy to the UK supply if the EU tariffs were to be enforced.
Fertilisers
The importance of fertiliser as an agricultural input is well evidenced. As an intermediate input to both crop and pasture growth, manufactured fertiliser makes up a significant proportion of total input costs for many farmers and growers.
Fertiliser represents on average 8% of all intermediate consumption in the agriculture sector and 13% of agricultural variable costs between 2018-2023. For cereals farms, fertiliser is the most significant variable cost representing over a quarter of variable costs, 39% of crop specific costs (including seeds, fertilisers, crop protection and other costs) and 13% of total costs incurred on a typical farm.
For instance, since the energy crisis, the UK has become much more reliant on imports of liquid ammonia as our gas costs are too high to support domestic ammonia production. In this respect, the US plays a key role in diversifying our fertilisers’ supply and enables us to be less reliant on Russian supply, which dominates global fertiliser and ammonia supply.
Conclusion
We want to work together with the UK Government to ensure British farmers and growers are at the forefront of any decision making. We urge the government to closely monitor the agri-markets to ensure that they can act promptly if we see disruption and a potential surge in imports as a result of the US reciprocal tariffs.
On negotiations for a trade agreement with the US, British farmers and growers uphold some of the highest standards in the world, taking great pride in their commitment to animal welfare, food safety and environmental standards from farm to fork. We urge the government to honour the commitments it has repeatedly made both to farmers and the public – that it will protect the safety, animal welfare and environmental standards which are at the heart of UK food and not allow it to be undermined by a trade deal.
While we do not want to see tariffs on UK agri-food going into the US, our second largest export market beyond the EU, entering FTA talks in the context of President Trump’s recent tariff announcements means our negotiators are on the back foot from the get-go and makes a balanced negotiation incredibly difficult.
With the UK farming sector already under huge strain, confidence at an all-time low and investment dropping day by day, it cannot deal with another trade deal which sells out domestic food and farming. Therefore, we urge the government to keep its promise to uphold the level playing field and protect our most sensitive sectors.