LONDON — The U.K.’s trade deal with Donald Trump was touted as a post-Brexit win.
Months later, as America’s global tariff regime starts to take shape, Brits aren’t feeling quite so lucky — and some are downright cheesed off.
Under the Economic Prosperity Deal agreed with the U.S. in May, most British goods exported to America are subject to 10 percent “reciprocal” tariffs. This is in addition to existing tariffs — known to traders as most-favored nation (MFN) rates.
By contrast, the EU struck a deal with Trump in July that would see goods from the bloc hit with an all-inclusive 15 percent tariff — except where the existing MFN rate is higher.
That means many U.K. products with an MFN rate above 5 percent will now be hit by higher tariffs than competing EU products — and cheese in the firing line.
“Overall, U.K. goods will get somewhat better [treatment] than European Union products,” explained Ed Gresser, director for trade and global markets at the Progressive Policy Institute and a former policy adviser to the United States Trade Representative. “This also appears to be the case for the very top U.K. exports to the U.S. cars, medicines, oil — which bring in the most money, and for wines and liquors.”
“However, there will also be many specific cases in which EU goods get better treatment than British goods,” Gresser added. “These include some probably emotive and visible ones, such as cheddar and Stilton cheese, and Shetland wool sweaters.”
Under the current U.S. tariff regime, British cheddar exported to the U.S. would be hit by overall tariffs of between 20 and 26 percent — depending on the packaging and processing — while the EU would get tariffs of between 15 and 16 percent.
Irish competition
The discrepancy has not gone unnoticed by British cheesemakers, who fear they could now be undercut by their European rivals.
“Overall, U.K. dairy — and cheesemakers in particular — have been presented with a worse deal than their EU competitors as a result of the U.S.-U.K. agreement,” said Rod Addy, director general of the Provision Trade Federation, which represents British cheesemakers.
The difference between U.K. and EU tariff rates “suggests EU exporters, particularly [in] Ireland, may benefit relative to the U.K.,” he added. “Given that cheddar accounts for roughly three quarters of all U.K. dairy exports, that is highly significant.”
The U.K. exported 9,855 metric tons of cheese and curd products in 2024 worth over £75 million, data from the Britain’s Agriculture and Horticulture Development Board shows. According to the latest data available for 2025, the U.K. exported around 4,365 metric tons between January and June worth over £36 million.
Coombe Castle International, a major exporter of cheese to the U.S., is among the British cheese businesses feeling the strain. Currently, the U.S. market makes up around a third of its business. But they now fear tariffs could reduce demand for their cheeses, amid increased competition from the EU.
“It does look like we are now disadvantaged compared to Europe, and that’s certainly going to hurt us when it comes to cheddar and butter, where we’ve got direct competition in the EU,” said Darren Larvin, Coombe Castle International’s managing director.
“Tariffs have come at the wrong time. We have a relatively high milk price, a weak dollar and prices are high with the cost of living. All of those put together mean it’s quite tough at the moment. So we could really do without having any further costs.”
Larvin said that like “most people” in the industry, Coombe Castle have “had to pass all of that on to the consumer in the U.S. … We’re just not in a position to share any of that [extra cost]. We’ll see how that goes through the chain and what effect that has on demand.”
Shortly after the EU’s deal with the U.S. was announced, Larvin contacted the Department for Business and Trade to ask them how they planned to protect U.K. dairy exports to the U.S. Their response left him nonplussed. In response, an official said only that negotiations to reduce the 10 percent tariff rate were continuing, making comparisons “difficult.”
Government ‘more concerned with Land Rovers’
British Stilton makers have also been left disappointed by the U.K.-U.S. deal, with the cheese now facing duties of between 22 and 27 percent, depending on the type of Stilton.
“Effectively, it’s another 10 percent on the cost of the product which is very unhelpful for everyone,” said Robin Skailes, managing director of the family-run Stilton maker Cropwell Bishop Creamery, which exports around £2.5 million of cheese to the U.S. each year.
“I can understand why the U.S. government are doing it. But what I don’t like necessarily is how our government advertises that as a success and a deal. It’s not a deal because we’re actually worse off than they are in Europe.
“What our government should have done is factored in some of the existing tariffs that are already there. … But they may not have even known that. I mean, why would they bother with Stilton? They are more concerned with Land Rovers, that was the big thing. Food is never at the top of their agenda.”
As a result of the additional tariffs, Skailes said the firm would take a “massive hit” to their margins and has already had to pass on some of the extra cost to the consumer.
“We can share some of the pain, but there’s not a huge amount of margin in food. We’re not selling iPhones — we don’t make trillions of dollars.”
For now, it’s too early to tell whether tariffs will reduce demand for British cheese in the U.S. but Coombe Castle’s Larvin is not optimistic.
“It will certainly make us less competitive — and we’re certainly less competitive compared to Europe now.”
A spokesperson for the U.K.’s Department for Business and Trade said: “The U.K.’s landmark trade deal is the result of a pragmatic approach to working with the US. We will continue to work with the US to get this deal implemented as soon as possible to give industry the security they need, protect vital jobs, and put more money in people’s pockets through the Plan for Change.”
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