US tariffs hit whisky, salmon exports in first quarter

UK food and drink exports fell 4.8% to £5.7 billion in the first quarter to March 31, 2026, according to the UK Food and Drink Federation’s (FDF) latest Trade Snapshot report.

In volume terms, UK food and drink exports saw a 8.9% decline year-on-year to 2 billion kg. This was the lowest Q1 export volume seen in the past decade, excluding at the height of the pandemic, and the third lowest since 2000.

Meanwhile, imports of food and drink to the UK rose 2.6% in Q1 of 2026 to £16.3 billion, widening the gap between the UK’s food and drink exports and imports. 

Amid US tariffs, the FDF said UK food and drink exports to the United States fell 28% year-on-year in the first quarter to March 31 to £529.6 million.

First quarter whisky exports from the UK slipped 1.1% in value to £1.2 billion but volume rose 5.4%. However, amid US tariffs, Q1 whisky exports to the US fell 27% to £182.1 million, with volume down 14.7%.

On April 30, the Scotch Whisky Association (SWA) welcomed the news that US President Trump announced the removal of tariffs on Scotch Whisky in the United States.

In the first quarter, UK salmon exports in general fell 40% to £177.8 million, and salmon exports to the US fell 45.6% to £68 million.

The report said: “It has been over a year since the introduction of US tariffs in April 2025. UK food and drink exports to the US fell 28.0% to £529.6m in Q1 2026,” said the report.

“The UK’s early gains have eroded as the US struck similar deals with other countries, and the Supreme Court ruling reset most countries to the same 10% additional duty baseline.

“This decline is seen across most product groups, with salmon down 45.6% in value and volume, alcohol struggling, and infant food and cheese seeing declines too.

“The removal of tariffs on UK whisky offers an opportunity to grow exports. The UK-US trade surplus fell from £359m to £110m, a 69.3% decline year on year. Even allowing for possible stockpiling in Q1 2025 before tariffs were implemented, this is the lowest surplus since Brexit.

“US exports to the UK rose at the same time. Salmon, spirits, and chocolate all saw strong growth. There is clear asymmetry between US producers growing their share at the same time UK exporters are losing ground in theirs.”

Food and Drink Federation CEO Karen Betts said: “Food and drink businesses are part of the fabric of every community in the UK, and it’s concerning to see them struggling to compete overseas.

“The UK produces world-class food and drink, drawing on our heritage and our reputation for innovation, but we have to be able to remain competitive overseas against local products.

“The costs of producing food and drink in the UK are higher than in many competitor economies, from energy to employment, and constantly changing regulation only adds to these.

“There is plenty government can do to improve the competitiveness of our food and drink exporters, many of which are SMEs, from helping companies to access the benefits of trade deals to lowering the cost of doing business in the UK.

“The government’s current proposals to remove tariffs on imported food risk making a bad situation worse.

“It is very undermining of UK businesses and of the people they employ, and it undermines the UK’s food security in the longer term. Government should suspend tariffs on ingredients rather than manufactured products, to lower the cost of producing food here in the UK and to help businesses keep prices down for consumers.”