UK Food Trade Deficit Hits 25-Year High

The Food and Drink Federation reported that the United Kingdom's food and drink trade deficit reached £21.1 billion in the first half of 2026, the largest gap in over 25 years. Export volumes fell by 11.7%, marking the weakest start to a year since 2021 and the third lowest level on record.

Several geopolitical and economic factors drove the decline. US President Donald Trump implemented a 10% import tariff that reduced cross-Atlantic sales by 16.5%, with salmon exports specifically plunging by nearly a third. Conflict in Iran and broader Middle East disruptions caused exports to the UAE to drop by approximately 23.4% to 25%. Additionally, producers faced Brexit-related trade barriers with the European Union and domestic challenges including record heat and droughts.

While exports fell, imports rose to their second highest level on record, reaching 19.1 billion kg. This increase was supported by trade deals with Australia and a cost-of-living package implemented by former Chancellor Rachel Reeves, which suspended tariffs on manufactured foods like biscuits and chocolate.

Industry leaders from the National Farmers’ Union of England and Wales and the Food and Drink Federation warned that the widening deficit threatens national resilience. They called for a long-term government strategy to support domestic production against rising energy, labor, and logistics costs.