Scottish Land & Estates calls for government to protect farming businesses amid potential UK-US trade war

Press Release

Scottish Land & Estates (SLE) has today urged the UK Government to ensure that any response to a potential trade war with the US does not put Scotland’s farming businesses and rural economy at risk. 

The warning follows Prime Minister Keir Starmer’s comments in Paris yesterday, vowing that he would ‘keep all options on the table’ in responding to the potential imposition of US global tariffs as high as 25% — a move that could have dramatic economic consequences.

Eleanor Kay, Senior Policy Adviser (Agriculture and Climate Change), said: “This is a critical moment for UK trade policy, and Scotland’s agricultural sector cannot be collateral damage in a rushed or retaliatory response. The UK Government has consistently failed to provide adequate analysis on the impact of trade decisions on rural businesses, and we cannot afford to see that mistake repeated.

“With the threat of a trade war adding to the mounting challenges for Scottish farmers—including real-terms cuts to the agriculture budget, future legislation threatening the rural economy, and uncertainty in taxation and support schemes, we’d like to see urgent measures to safeguard the sector.

“Our highest-value agri-food exports to the US, including Scottish whisky, must be given priority in negotiations. The UK Government must engage with the Scottish Government to ensure that key sectors are protected from disproportionate trade-offs, particularly in light of the reciprocal nature of trade between our countries.”

SLE also highlighted concerns over food standards and consumer transparency in any future trade negotiations, and highlighted a number of key asks before any UK-US trade deal is agreed:

• A thorough impact assessment on the consequences of any UK-US trade agreement for Scotland’s farming businesses and rural economy.
• A commitment that no trade deal will lower UK food standards, offshore environmental impact, or allow imports using banned production methods.
• The introduction of clear labelling laws before any trade deal is struck, ensuring consumers can make informed choices.
• A level playing field that takes into account UK farmers facing additional costs, such as a UK Carbon Border Tax, while imported food produced with artificial fertilisers remains untaxed.
• Adjustment policies to help UK farmers compete in any new trading environment, alongside proper investment in future support schemes.
• Increased parliamentary scrutiny of trade deals, with a more transparent and inclusive process allowing for input from key sectors and devolved administrations.

Ms Kay added: “The UK Government has repeatedly promised not to lower food standards in trade agreements, and this is its most significant test yet. Any deal must guarantee that UK farmers are not undercut by imports produced to lower environmental and animal welfare standards. Additionally, consumers must be given clear labelling to understand the differences in production methods. Just because you can ship it doesn’t mean the UK consumer will want to buy it.

“The government must not rush into a trade deal that undermines our food security and national security. There is also an inherent contradiction between the UK Government’s commitment to resetting its relationship with EU while also negotiating a trade deal with the US, whose market access ambitions often run counter to EU standards.

“There are opportunities in trade, but only if approached carefully. Everything may be on the table, as the PM says, but it cannot include compromising our farmers, our rural economy, or our ability to feed ourselves.”