UK businesses and consumers could benefit from lower prices on imports of everyday essentials like spices and juices as the Government takes further action to make the UK the best place to do business and kickstart economic growth.
In a further demonstration of the government’s commitment to free trade and responding to business need, the UK Global Tariff will be temporarily suspended on 89 products saving UK businesses up and down the country at least £17 million a year.
The products include plywood and plastics, which are essential for construction – making life easier for chippies all over the country.
Working in partnership with industry, the government has decided to suspend import tariffs on a whole range of products to lower costs for businesses, tariffs will now be cut to zero until July 2027.
The savings to businesses on products such as pasta, fruit juices, coconut oil and pine nuts could be passed onto consumers just in time for the summer season, meaning lower food prices in supermarkets, restaurants and pubs.
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.
These changes will support key growth sectors such as advanced manufacturing and clean energy to compete with international rivals, supporting the Government’s Industrial Strategy with the Plan for Change.
Business and Trade Secretary Jonathan Reynolds said:
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.
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. These suspensions are just another example of that.
Chancellor of the Exchequer Rachel Reeves said:
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.
Through our Plan for Change we’re supporting British business and putting more money in people’s pockets.
The UK Global Tariff applies to goods entering the UK that do not qualify for preferential treatment under, for example, a free trade agreement.
Businesses across the UK apply for temporary suspensions on a regular basis by providing evidence of the benefits to themselves, their sector and the wider economy.
CBI Europe and International Director Sean McGuire:
In the face of an uncertain and unpredictable global trading environment, government should be commended for suspending import duties on an array of products. 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.
The UK has already reduced tariffs on certain imported goods, benefitting British consumers with better choice, quality and prices on products like fruit juices from Peru and vacuum cleaners from Malaysia.
The Government is going further and faster in negotiating trade deals with partners including India, the Gulf Cooperation Council, South Korea and Switzerland which will unlock new opportunities for businesses, support jobs, and boost wages.
These measures come as the government acts swiftly to protect UK businesses and workers in a new era of global trade, through increasing flexibility on the zero emission vehicle (ZEV) mandate, cutting the red tape and bureaucracy that slows down clinical trials in the life sciences sector, investing up to £600 million in a new Health Data Research Service and backing a £30 million package to support the reopening of Doncaster Sheffield Airport which is expected to support 5,000 jobs and boost the economy by £5 billion.