Trade braces for tariffs on Trump’s ‘Liberation Day’
The business world is braced today for US president Donald Trump to roll out far-reaching tariffs in what he has called ‘Liberation Day’.
Trump is expected to ramp up his trade war, which has already seen tariffs imposed on China – but so far, without implicating spirits.
Mexico and Canada have also been in the firing line, however on two occasions, the threatened 25% tariffs on both nations – which would impact spirits such as Tequila and Canadian whisky – were delayed.
The EU has also delayed retaliatory tariffs on American whiskey, relating to the tariffs the Trump administration imposed on steel and aluminium during his first presidency. The delay expires on 13 April.
The founder of family-owned Scotch whisky maker Wemyss said he was “bracing for the ripple effects”.
William Wemyss, founder and chairman of Wemyss Family Spirits, whose portfolio includes Kingsbarns Distillery, Darnley’s Gin, and Wemyss Malts, said: “As a family-owned business producing and selling spirits, including Scotch whisky, we are once again bracing for the ripple effects of political decisions made thousands of miles away.
“The looming threat of fresh US tariffs brings a sense of déjà vu, a reminder of the damaging impact of the last trade dispute, which cost our industry £600 million [US$776m] in just 18 months.
“The United States is the industry’s largest export market, approaching £1 billion [US$1.29bn] of sales, and is becoming increasingly important for us as a small player.
“Tariff-free access gives us the confidence to invest, to grow, and to share our craft with whisky lovers across the Atlantic.
“We urge both the UK and US governments to prioritise Scotch whisky in trade discussions and avoid allowing our sector to become collateral damage once again.
“Long-term investment and jobs depend on it. While we continue to diversify and build resilience, we remain committed to protecting the legacy, quality, and global reputation of Scotch whisky.”
The founder also highlighted the impact tariffs would have on tourism – an additional blow to the spirits trade.
“If tariffs lead to inflationary pressures in the US, consumers may have less discretionary income to spend on experiences like golf holidays in St Andrew’s – which could affect visitor numbers to our distillery and impact the wider tourism sector,” Wemyss added.
In the March magazine, The Spirits Business interviewed trade bodies, producers, distributors and legal experts to get a sense of the implications tariffs could have on the spirits industry should they go ahead.
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