Trump tariffs could raise UK cheese price by 25% in US

UK cheese could become up to 25% more expensive in US stores due to president Trump’s imposition of 10% tariffs on British imports, leading dairy exporter Somerdale International has warned.

The business, alongside owner Barbers, is the UK’s largest exporter of cheese to the US, selling product under the Barbers 1833, Westminster and Somerdale brands to retailers including Kroger and Whole Foods Market.

Somerdale director Alan Jenkins, who looks after the company’s US operation, told The Grocer the 10% levy placed on most UK imports last week would ultimately lead to retail price hikes of 20% to 25% from next week, due to their compounding nature – with additional costs from the tariffs having to be borne by both retailers and distributors.

Whether demand would drop off in light of these price hikes, “we don’t know, but it’s a worry”, Jenkins said.

“Prices will rise, we’re passing that forward as best we can and not pushing back to our suppliers,” he added. 

“It takes a long time to create demand, and that can also go really quickly. But we’re in consistent growth – shipping 250 containers-worth of cheese to the US in 2024 – and we’re confident we can ride out this storm.”

UK cheese export volumes to the US jumped by 4.1% last year, Jenkins said, citing FDF data. This growth reflected the “well-earned relationships” forged with US buyers over a 20-year period.

Olive oil brand Filippo Berio is also warning of big retail price hikes in the US market, with its UK MD Walter Zanre saying American shoppers will soon have to pay up to 20% more for their oil, given the US’s dependence on imports. “Wherever these tariffs ultimately land, it will have to be passed on. We’ve already had contact with customers in the States over this.” 

Already had initial contact with customers in states

It comes as the US rowed back from most of its highest retaliatory tariffs on Wednesday, pausing them for 90 days, with the exception of China’s tariff, which stood at 125% as The Grocer went to press, following an 84% retaliation against the US on Wednesday.

Meanwhile, a survey by Nexus PR revealed that 52% of 2,000 UK consumers polled before Trump’s ‘Liberation Day’ announcement last week said they were less likely to buy US products now than 12 months ago.

The survey also found 57% would boycott US food and drink brands if unfair tariffs were put on British products.

More than half (54%) trusted EU food products more than US products.