Copy of Sentinel V22 #34-Tax Progress, U.S.-U.K. Trade Deal
- Steve Dittmer
- Jul 22
- 4 min read
Neither Is A Done Deal Yet
Steve Dittmer | AFF Sentinel
Colorado Springs, CO
Originally sent to subscribers 05/09/25
The House Ways and Means Committee released a partial framework of the tax portion of the Reconciliation bill Friday night.
The continuation of present tax policy (from 2017’s law) was included but the new tax breaks President Trump brought out during the campaign -- no taxes on tips, overtime and Social Security -- were not in this draft. Neither was the state and local tax (SALT) provision which the Republicans from high state tax states like New York, California and Illinois are actually fighting to increase, not eliminate. Some Republicans have also been fighting to keep Green New Deal funds from the IRA law passed by the Democrats. They are concerned about job losses if some of that funding is recalled.
As for trade, cattlemen, used to looking at the long term, have been somewhat patient with President Trump’s tariff efforts. After all, his team is trying to do in 90 days what normally takes months and years.
So we were excited when a deal with the UK was announced, though an immediate question popped up in our minds.
Sure enough, only beef that has been qualifying for the never-ever programs is getting a boost. The great majority of beef -- under the present outline of the deal as we understand it -- is still not eligible for export to the UK. They have removed the quota limits and tariffs for never-ever beef but that is all.
In fact, the British ag groups and officials have been very vocal in their interpretation of their victory, crowing that they continue to reject our beef that doesn’t adhere to their artificial food safety standards.
That is just the kind of non-tariff trade barriers we’ve been hoping to get rid of. But evidently, it hasn’t happened yet. The EU and the UK continue to adhere to their biased and inaccurate interpretation of food safety, despite research from the U.S. -- and the EU scientists in the day -- that there is no problem with our beef. They just use that as a protective measure for their beef producers.
The British are trying to keep the imbalanced status quo they have unfairly enjoyed for over 30 years.
One of their association officials had the nerve to suggest that allowing American beef access by knocking down tariffs that weren’t there eight weeks ago wasn’t fair. The whole point of these negotiations is trying to re-balance trade, not reinforce unfair positions.
In fact, Treasury Secretary Scott Bessent pointed out that Trump was very good at creating leverage where none existed before. That’s what the tariffs are all about. But don’t expect the opposition to like it.
We don’t think American cattle producers are afraid of allowing British beef access to our markets. Their beef is not the high quality, tender, grain-fed beef that the overwhelming majority of ours is.
But U.S. agriculture in general will have better access to the UK market. But the British continue to claim that using chlorine rinses on poultry is unsafe. However that is a small percentage of American poultry.
But the White House and the NCBA evidently are optimistic that further negotiations as the deal is fleshed out and detail negotiated, can reach some accommodations about the overwhelming majority of American produced beef.
Ag Secretary Brooke Rollins took pains to point out the superior quality and food safety of American beef and noted that she will be in Britain next week for further negotiations.
At the White House event, U.S. Trade Ambassador Jamieson Greer said there will be continued talks regarding “hormone-treated” beef.
"We are going to discuss all of these types of issues and obviously the importing country, whether it is us or them, you have got to follow the rules on these types of things. Our point is that the rules need to make sure that they are based on science and that's our expectation," Greer said. "We know the UK believes that too. So, we want to come to an accommodation. We want the consumer of each country to choose what they want."
So, a foot in the door is better than nothing at all. The Trump administration is obviously putting great store in their ability to negotiate. Giving the consumer choice is natural to America but evidently anathema to the British.
But we have been spoiled by getting rid of such unfounded notions about implanted cattle with the Phase 1 deal of Trump’s first term. We were surprised and delighted with the deal with China, even if they have not lived up to everything. But they have let us in to the tune of becoming our number three export customer overseas.
In fact, USMEF has calculated that if the China tariffs last all year, we will lose not only the $1.4 billion China has been buying, but the lack of a competitive bidder in the Asian marketplace will decrease demand and prices, likely costing us $4 billion a year.
Meanwhile, all the world’s major markets are enjoying American beef and variety meats -- except the EU and the UK.
Funny how “science” is different on one side of the ocean from another. But we learned about faulty interpretation of “science” from the Covid episode.
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