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Up to 7,000 jobs at stake after PM gives way to Trump on bioethanol

The Observer

|

June 01, 2025

Ministers will this week be sent a dossier urging “immediate” action to deal with a crisis threatening thousands of jobs in an industry that is critical to the UK’s net zero ambitions.

- Catherine Neilan

Last month, President Donald Trump demanded that British tariffs on US bioethanol be cut from 19% to zero. Prime minister Keir Starmer was reportedly watching his team, Arsenal, lose their Champions League match when he agreed a quota of 1.4bn litres - equivalent to the entire UK market.

Britains's bioethanol industry plays a vital role in the UK's decarbonisation plans, reducing emissions in road transport, as well as producing sustainable aviation fuel. British plants also supply CO2, which is used in a range of services from producing fizzy drinks to various surgical procedures.

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