Keeping track of whether US President Donald Trump has introduced new tariffs or not is not easy given the flurry of announcements, suspensions and counter announcements he and others have made on the subject over the last couple of months.
However, while the economic and political wrangling between the US and Canada, Mexico and China may seem far away, the Governor of the Bank of England, Andrew Bailey, has warned that a full-blown trade war would represent a “substantial” threat to the UK economy and that agriculture and horticulture would not be immune from the effects.
Industry observers have pointed out that fresh produce businesses are already grappling with high input costs, labour shortages, and post-Brexit trade complexities. Furthermore, as an article in the Guardian pointed out, the sector ‘relies on a range of imported agricultural inputs, from fertilisers and pesticides to machinery and packaging materials. Tariffs will increase the cost of these essentials, forcing growers and suppliers to absorb higher expenses or pass them on to retailers and consumers. Many businesses are already struggling with rising wages and energy bills, and this added financial pressure could make it even harder to remain competitive.’
With food inflation already at significant levels, there are also concerns that any further increases to costs could limit access to healthy, affordable food for low-income households, while a failure for the market to compensate growers for increased costs could drive more of them out of business.
