US tariffs cost Scotch whisky £20m a month
The US’s 10% tariff on UK goods is costing the Scotch whisky industry almost £20 million (US$27m) a month in lost exports, according to the Scotch Whisky Association (SWA).
This week, US president Donald Trump made a state visit to the UK, four months after the two nations agreed a trade deal that capped tariffs on imports at 10%.
In the wake of Trump’s trip across the Pond, trade bodies and distilleries have expressed the need for the tariff to be lifted.
It followed Scotland’s first minister, John Swinney’s visit to Washington to make the case for Scotch earlier this month.
While there was a glimmer of hope the two sides might negotiate the removal of tariffs on UK spirits imports, it did not materialise.
The SWA and the Distilled Spirits Council of the US (Discus) have united their calls for the UK and US governments to swiftly return to tariff-free trade.
SWA chief executive Mark Kent said: “While we are grateful for the efforts from both sides to secure a positive outcome, no deal has been announced on whisky tariffs.
“The 10% tariff is costing the industry almost £20m a month in lost exports, and over a thousand jobs have already been shed in the last year in Scotland alone.”
Scotch whisky distilleries Glenglassaugh, Isle of Harris and Rosebank have all cut production or jobs in recent months.
“The Scotch whisky and American whiskey industries have both benefitted from zero-tariff trade over the past three decades and we urge governments to reach a zero-for-zero deal as soon as possible – an outcome which will benefit industries and communities on both sides of the Atlantic,” Kent added.
Thousands of job losses
According to Discus analysis, a 10% tariff on spirits imports from the UK could lead to retail sales losses of more than US$300 million and the removal of 3,300 American jobs.
Chris Swonger, president and CEO of Discus, said: “We had hoped that president Trump’s visit to the UK would lead to an agreement to lift the US tariff on Scotch whisky and other UK spirits.
“The spirits sector is a model of fair and reciprocal trade, and we remain committed to working with the Trump administration to help get distilled spirits products get back to permanent zero-for-zero tariffs with our key trading partners.
“Removing this tariff would provide much-needed support to US hospitality businesses particularly as the important holiday sales season approaches.”
The SWA’s Kent also called for further support from the UK government ahead of the autumn budget in November.
He continued: “In the upcoming autumn budget, it is critical that no further harm is done to the industry and that the domestic tax burden on the industry falls, in the wake of mounting international tariff pressures.
“We will be seeking an urgent meeting with ministers to consider next steps to find a deal on tariffs as soon as possible.”
Wemyss Family Spirits, which operates Kingsbarn Distillery in Scotland, also warned that the tariff had “wiped more than £4 million [US$5.4m] a week from Scotch whisky exports” and put jobs at risk.
The US represents approximately 10% of sales for Wemyss Family Spirits.
William Wemyss, founder and chairman of Wemyss Family Spirits, said the US was “one of our biggest single export markets”, with tariff-free trade providing “the confidence to invest in people, stock and new releases”.
He noted: “It’s also making it harder to plan for the future. Independent distillers like us are having to pause investment, tighten margins and delay opportunities about growth.
“We need political courage on both sides of the Atlantic to get a deal over the line.”
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