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The FDF also report that the UK’s food and drink export surplus with the US has fallen by over 69% – from £359m to £110m in Q1 2026.
This was driven by the 27.9% drop in UK exports to the US, and also by a 11.5% rise in US food and drink exports into Britain.
The US are also set to benefit from proposed tariff suspensions announced by the UK government this year, which would make it cheaper for US businesses to export products like chocolate, biscuits, jams and spreads to the UK, while UK manufacturers face higher costs sending products to the US, meaning this trend is likely to persist.
“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.
9am BST: Eurozone consumer inflation expectations report
10am BST: Italian business confidence data
3pm University of Michigan’s US consumer confidence index
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