The Scotch Whisky industry has raised the alarm about Donald Trump re-imposing tariffs on imports when he returns to the White House in January.
The President-Elect has made putting tariffs of up to 20 per cent on goods from outside the United States a cornerstone of his economic policy.
Mr Trump claims the move will protect American jobs, boost the economy and raise revenue. But most economists disagree.
Although exporters might cut prices to maintain sales, the US companies importing the goods, who pay the surcharge, are seen as more likely to pass the cost on to consumers.
When Mr Trump was last President, he slapped a 25 per cent tariff on imports of Single Malt Scotch Whisky as part of a wide-ranging trade war with Europe over aerospace subsidies.
Donald Trump has made putting tariffs of up to 20 per cent on goods from outside the United States a cornerstone of his economic policy
The Scotch Whisky Association (SWA), headed by chief executive Mark Kent, has raised concerns about the prospect of tariffs returning
The 18-month price hike cost the Scottish Whisky industry around £600 million in exports (Stock image)
The 18-month price hike cost the Scottish Whisky industry around £600 million in exports.
The tariff was suspended for five years in 2021 but is due to return in June 2026.
The Scottish Whisky Association, whose members support 25,000 jobs and generated around £7 billion for the UK economy, said ‘zero-tariff trade’ must continue.
A spokesperson for the SWA said: ‘Scotch Whisky and US whiskey producers are united in our belief that zero-tariff trade between the US and UK is in the best interests of our countries, consumers and industries.
‘Our world class whiskies have benefited from zero-tariff trade for over a quarter of a century. It is in all our interests that our collective energy is focussed on growing our sectors, creating jobs and investment.
‘As Prime Minister Keir Starmer has said, the UK and US stand shoulder to shoulder and are partners in enterprise. To deepen this partnership, the US and UK administrations should agree to maintain the zero-tariff trade of whiskies across the Atlantic.’
The UK Government added: ‘There is huge appetite for our excellent Scotch whisky in the US and all around the world. We share a special relationship with the US and will always support our Scotch exports for years to come.’
First Minister John Swinney said tariffs could cost jobs in Scotland.
‘Tariffs can be very damaging to domestic employment within Scotland, because we are an exporting country, not just in relation to whisky,’ he said.
‘We have other strengths in food and drink and in manufacturing and in various innovative technologies, where the existence of tariffs could be a significant factor for the health and the prosperity of employment.’
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