Key facts
- UK food and drink trade deficit reached over £21 billion, the largest since 2000.
- Food and drink export volumes fell 11.7% in the first half of 2026.
- Exports to the UAE fell by almost a quarter due to the US-Israel war on Iran.
- US import tariffs hit cross-Atlantic sales by 16.5%.
- Imports from Australia are up 25% in value terms.
- Tariffs on manufactured foods like chocolate and biscuits were suspended.
The UK's food and drink trade deficit has widened to over £21 billion, marking the largest gap since 2000. This situation is attributed to a combination of factors including the ongoing complexities of post-Brexit trade, disruptions from the war in the Middle East, and US import tariffs impacting overseas deliveries, while imports have simultaneously surged.
Analysis by the Food & Drink Federation (FDF) revealed that UK food and drink export volumes decreased by 11.7% in the first half of 2026, reaching 4 billion kg. This volume is only marginally higher than during the Covid-19 pandemic and the 2001 foot-and-mouth disease outbreak. Exports to the European Union saw a value decrease of 0.9%, continuing a trend of additional costs and complexity associated with trading since Brexit. Exports to countries outside the EU experienced a more significant drop of 6.9% in value. This decline was partly influenced by sales disruptions in the Middle East, with exports to the UAE falling by nearly a quarter, linked to the US-Israel war on Iran. Furthermore, the introduction of a 10% US import tariff negatively impacted cross-Atlantic sales by 16.5%.
In contrast, food and drink imports reached 19.1 billion kg in the first half of 2026, the second-highest level on record, surpassed only by the same period in the previous year. Imports from outside the EU have increased by over a fifth since 2023, facilitated by eased restrictions through trade deals, notably with Australia, which now supplies 25% more in value to the UK, including products like meat, oils, vegetables, and whisky. The suspension of tariffs on various manufactured foods, such as chocolate and biscuits, as part of former chancellor Rachel Reeves's cost-of-living relief package, has also contributed to higher import levels. Additionally, EU food producers have increased their deliveries to the UK in value terms, up 0.8% year-on-year, having recovered in volume since Brexit.
Industry leaders expressed concern over the widening deficit. Tom Bradshaw, president of the National Farmers’ Union of England and Wales, described the figures as a "wake-up call," emphasizing that in an era of growing geopolitical uncertainty, the UK cannot take its domestic food production capacity for granted. He highlighted that the trade deficit underscores the necessity of a long-term strategy to support British production, recognizing that "food security is national security." Bradshaw pointed to immense pressures on farm businesses, including rising costs, regulatory burdens, extreme weather, and global market volatility, urging the government to create conditions that foster investment and growth for national resilience.
The FDF, representing numerous food and beverage producers, noted that manufacturers face "significant and growing" pressures from escalating costs for energy, ingredients, transport, packaging, and labor, alongside evolving regulations. Karen Betts, the FDF's chief executive, stated that the growing trade deficit raises "stark questions about our food security" in a world affected by conflict and climate change. She questioned the logic of removing tariffs on imported goods like biscuits from China, which are then sold more cheaply in the UK than domestically produced alternatives.