US tariffs cost Scotch whisky £4 million every week
The Scotch Whisky Association (SWA) travelled to Washington DC in the US to stress the need for tariff-free trading as the current deal costs the sector £4 million (US$5.4m) per week.
The SWA accompanied Scotland’s first minister, John Swinney, to the States ahead of US president Donald Trump’s planned visit to the UK next week.
Swinney said: “During president Trump’s visit to Scotland in July, we succeeded in putting whisky firmly on the trade agenda and I pledged to do whatever I could to help get a better tariff deal.
“The negotiations themselves are, of course, for the UK negotiating team, but during this trip we are partnering with industry to promote the interests of Scotch whisky – a key economic interest and iconic Scottish product – and make the case for a better tariff deal.
“We will argue that the reduction of tariffs is in the interests of the United States as well as Scotland. The United States is the largest market for Scotch whisky, but Scottish distillers also spend hundreds of millions of dollars every year buying Bourbon casks from Kentucky.
“With president Trump’s state visit imminent, these are critical days on which hopes of a better tariff deal for Scotch whisky rest. We are here to make sure we have done everything possible to get the best deal for Scotland.”
SWA chief executive Mark Kent described the first minister’s visit to stress the importance of tariff-free trading as a “positive and timely intervention”.
The US and UK agreed a trade deal in May this year that would put a 10% tariff on all UK goods imported to the US. The Distilled Spirits Council of the US estimated that a 10% tariff on UK goods could lead to retail sales losses of more than US$300m and the loss of 3,300 American jobs.
Kent said: “The current 10% tariff is costing the Scotch whisky industry £4m a week in lost exports, with businesses losing out on investment, employment and growth.
“Scotch whisky and US whiskey share a close and longstanding trade relationship, and industries on both sides welcome the first minister’s leadership on this issue and his efforts to strike a deal that will benefit communities in Scotland and across the US.”
Direct impact on distillers
Simon Erlanger, managing director at Isle of Harris Distillers, also accompanied the SWA on the visit.
Erlanger noted: “We [Isle of Harris Distillers] are now the largest private employer on the island, but like many in our industry we have felt the strain of tariffs that directly impact our ability to protect jobs and invest in growth.
“President Trump has strong ancestral ties to Scotland, with his mother born on the Isle of Lewis mere miles from our home in Harris.
“That shared heritage underscores the importance [of] continuing progress towards removing tariffs and securing the long-term prosperity of this historic industry. In doing so, we safeguard livelihoods in rural communities like ours, and strengthen the enduring bond between Scotland and the United States.”
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