The United States (US) and United Kingdom (UK) have inked a new limited bilateral trade agreement that leaves the 10% Trump tariff in place while at the same time expanding agricultural access for the two countries. A key provision of the deal centers on beef trade, with both sides securing new market opportunities under preferential terms.
Under the agreement, the US will gain access to export up to 13,000 metric tons (mt) of hormone-free beef to the UK, marking a breakthrough for American beef producers. In return, the UK has secured a dedicated, tariff-free quota of 13,000 mt for beef exports to the US.
This UK-specific quota has been carved out of the broader 65,000 mt “other countries” quota, which previously allowed tariff-free beef access for nations without a specific trade deal. As a result, the remaining quota available to those countries has been reduced to 52,000 mt.
The implications are significant for major beef exporters like Brazil, which filled the vast majority of the “other countries” quota early in the year. On January 16, 2025, the quota for the year 2025 was already met—driven largely by Brazil’s surge in boneless beef product in the US. With an already filled quota for 2025, this means the UK would potentially have to wait until 2026 to gain their newly added quota.
With Brazil now facing a combined 36.4% tariff on out-of-quota shipments, which comprises the standard 26.4% duty plus the additional 10% tariff the pressure to push product into the US market early in the year is intensifying. Despite the higher tariff burden, Brazilian beef volumes remain elevated compared to year-ago levels, showing no signs of slowing.
Japan, another high-value player operating under the shrinking general quota, has also been impacted. Known for its premium wagyu exports, Japan is reportedly exploring options to secure a portion of the quota through formal negotiation tactics. Securing consistent, tariff-free access would be a breakthrough for Japan’s high-end beef segment, which relies on year-round market entry into the US.
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Image source: Getty
Written by Emily Schlichtig
