Government slashes import tariffs on everyday essentials to boost economy

In a bid to stimulate economic growth and ease financial pressures on households and businesses, the UK Government has announced a temporary suspension of import tariffs on 89 everyday essentials, including spices, fruit juices, and construction materials.

The move, which will save UK businesses an estimated £17 million annually, is part of the Government’s broader Plan for Change, aimed at making Britain the best place to do business while supporting consumers facing cost-of-living challenges.

The tariff suspensions, applied under the UK Global Tariff, will reduce import costs to zero on a range of products until July 2027.

Among the goods set to benefit are pasta, coconut oil, pine nuts, agave syrup, plywood, plastics, and plant bulbs. The decision is expected to lower costs for industries such as food production, hospitality, construction, and retail, with potential savings likely to be passed on to consumers in time for the summer season.

Business and Trade Secretary Jonathan Reynolds hailed the initiative as a cornerstone of the Government’s commitment to free trade.

“Free and open trade grows economies, lowers prices, and helps businesses to sell to the world,” he said. “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.”

Chancellor of the Exchequer Rachel Reeves echoed these sentiments, highlighting the relief the measures could bring to families.

“In a changing world, we know families are anxious about the cost of living, and businesses uncertain about their future,” she said. “That’s why we’ve announced lower prices on imports of everyday essentials – helping businesses to thrive and pass on savings to customers.”

The tariff cuts are poised to benefit a wide range of sectors. In construction, the suspension of duties on plywood and plastics is expected to support builders and tradespeople, while food and drink businesses could see reduced costs for ingredients like fruit juices and agave syrup – a key component in cocktails such as margaritas.

Amateur gardeners will also welcome cheaper plant bulbs as warmer weather approaches.

The initiative has been developed in close collaboration with industry, with businesses across the UK applying for temporary suspensions by demonstrating their economic benefits. Sean McGuire, CBI Europe and International Director, praised the Government’s approach.

“In the face of an uncertain and unpredictable global trading environment, the Government should be commended for suspending import duties on an array of products,” he said. “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 tariff suspensions align with the Government’s Industrial Strategy, which seeks to bolster key growth sectors such as advanced manufacturing and clean energy. By reducing costs for businesses, the measures aim to enhance their competitiveness against international rivals, supporting jobs and economic resilience.

This is not the first time the UK has moved to reduce import tariffs. Previous cuts have already benefitted consumers with improved choice and pricing on goods such as Peruvian fruit juices and Malaysian vacuum cleaners.

The Government is also pressing ahead with negotiations for new trade deals with partners including India, the Gulf Cooperation Council, South Korea, and Switzerland, which are expected to unlock further opportunities for British businesses and drive wage growth.

The UK Global Tariff applies to goods entering the country that do not qualify for preferential treatment under existing free trade agreements. The temporary suspensions reflect the Government’s responsiveness to business needs, with firms regularly invited to submit evidence of the benefits such measures bring to their sectors and the wider economy.

As the UK navigates a complex global trading landscape, these tariff cuts represent a pragmatic step towards fostering economic stability and growth.

For now, consumers can look forward to the prospect of lower prices in supermarkets, restaurants, and pubs, while businesses gain a vital boost to their bottom line.