Wales reacts to UK–US trade deal as farmers raise alarm

Pembrokeshire Herald

09-05-2025

Fears for food standards as steel and car sectors welcome tariff relief
WALES stands to gain and lose under a newly struck UK–US trade deal hailed as a 'historic breakthrough' by Prime Minister Keir Starmer — but Welsh farmers have warned it must not come at the cost of domestic food production.
The agreement, finalised during a late-night call between Starmer and President Donald Trump, slashes US tariffs on key British exports, including steel, aluminium and cars. The move is expected to protect thousands of jobs in Wales, particularly in Port Talbot's struggling steelworks and the automotive supply chain.
Speaking to workers at the Jaguar Land Rover plant in Solihull, Starmer said: 'We did the hard yards. We stayed in the room. This deal is about saving British jobs – and that includes those in Wales.'
However, the Farmers' Union of Wales (FUW) responded with caution, warning that the deal opens the door to cheaper American imports which could undercut Welsh beef producers.
While the UK has secured reciprocal access to the US market for British beef — including a tariff-free quota of 13,000 metric tonnes — the same figure of US beef will now enter the UK tariff-free.
FUW President Ian Rickman said: 'Welsh agriculture must not become collateral damage. An influx of US beef could disrupt our domestic market and force our farmers into unfair competition with cheaper, sub-standard imports.'
The UK Government has insisted that food safety standards will not be compromised — with hormone-treated beef and chlorinated chicken still banned. But the FUW says the real danger lies not in food safety, but in food production standards, such as environmental and animal welfare rules, which are often lower in the US.
Rickman added: 'Country-of-origin labelling must be made mandatory. Consumers deserve to know what they're buying — and Welsh farmers deserve a level playing field.'
The deal also promises 'preferential treatment' for UK aerospace components, and includes a reduction in car tariffs from 27.5% to 10%, safeguarding a vital export route for the British car industry. The US is Britain's largest car export market, valued at over £9bn annually.
Meanwhile, Welsh steel producers welcomed the US decision to scrap its 25% tariffs on UK steel and aluminium, originally imposed under Trump's protectionist measures. With Port Talbot's future uncertain, this lifeline could prove crucial.
Yet critics, including the International Chamber of Commerce, pointed out that many high US tariffs remain untouched. 'The reality is US tariffs on UK exports are still significantly higher than they were at the start of the year,' said secretary-general John Denton.
Tensions also flared in Westminster, where Conservative leader Kemi Badenoch accused Labour of capitulating to Trump: 'We cut our tariffs, and America tripled theirs. Starmer called it historic — I call it a sell-out.'
Welsh Liberal Democrats called for Parliament to vote on the deal, warning that ongoing negotiations over digital services and agriculture must be scrutinised. 'This isn't just a done deal — it's the start of a long road with major consequences for Wales,' said a spokesperson.
As the first country to strike a trade agreement with Trump following his controversial 'liberation day' tariff hikes, the UK has both broken new ground and raised fresh questions.
Starmer, addressing reporters after missing the second half of the Arsenal vs PSG match to finalise the deal, admitted: 'It's jobs won, not jobs done. This is a foundation, not a finish line.'
The FUW echoed that sentiment: 'As the dust settles, we will continue to keep a close eye on developments. The stakes for Welsh farming could not be higher.'