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GOVERNMENT AND THE US COULD CRIPPLE THE UK’S GREEN FUEL INDUSTRY BY FLOODING THE MARKET WITH CHEAP, SUBSIDISED US IMPORTS. 15:35, 21 May 2025Updated 15:36, 21 May 2025 UK drivers face
soaring petrol prices thanks to Britain’s new trade deal with the US, experts have warned. The deal between the Labour Party government and the US could cripple the UK’s green fuel industry
by flooding the market with cheap, subsidised US imports. The UK and US have agreed a “breakthrough” trade deal slashing some of Donald Trump’s tariffs on cars, aluminium and steel and that
the prime minister said would save thousands of British jobs. Keir Starmer said it was a “fantastic, historic day” as he announced the agreement, the first by the White House since Trump
announced sweeping global tariffs last month. Starmer, speaking to workers at the Jaguar Land Rover plant in Solihull, said the agreement had saved jobs in the car and steel industries that
had been under threat. READ MORE NEW UK PRIMARY SCHOOL DINNER RULES WITH SOME STAPLES BEING 'BANNED' Liberal Democrats trade spokesman Clive Jones slammed the government, saying
boethanol is a key component of E10 petrol: “This is a very worrying prediction for motorists who have already been clobbered by the cost of living crisis.” He added: “The government must
publish a full impact assessment of its deal with Donald Trump, including any extra costs for motorists.” Tom Reid of the Renewable Transport Fuel Association warned: “Scrapping tariffs on
bioethanol imported from the US will have dire consequences for the UK bioethanol industry, which will not be able to compete on price against the subsidised American product. “If the UK
plants were to shut down as a consequence of this, it leaves the UK open to fuel security problems in the future, if, for whatever reason, the US stops exporting bioethanol to the UK.
Article continues below “But by then the damage will have been done, the UK plants will have been scrapped, and we will have to import the bioethanol from somewhere else, which could
potentially be very expensive – and it will be UK motorists who end up paying for it.” A government source said: “This is nonsense. As drivers know prices at the pumps have been falling
under Labour. Petrol prices will not increase as a result of the UK-US Prosperity Deal in fact our landmark economic deal could even have benefits to fuel prices, while also protecting
thousands of jobs across the country and driving economic growth.”