US malt whisky tariff will lead to job losses, claim
The industry's body has said the introduction of a new tariff in the United States on single malt whisky will do huge harm to sales across the Atlantic and put jobs at risk.
The strath is home to distilleries including The Glenlivet, Dalwhinnie, Spey near Kingussie, Tormore on the Highland-Moray councils border and Balmenach by Cromdale.
SWA Chief Executive Karen Betts said the 25 per cent tax brought in today was bad news for the industry which has been caught in the trade war crossfire between Boeing and Airbus Industries.
She said: "It means that Scotch Whisky is now paying for over 60 per cent of the UK’s tariff bill for the subsidies it provided to Airbus, eight times more than the next most valuable UK product on the tariff list.
"That single malts are being targeted is particularly damaging for smaller producers, who stand to be the hardest hit.
“Scotch Whisky has been imported tariff-free to the United States for the last 25 years.
"This move undermines decades of hard work and investment which has seen Scotch Whisky sales boom in the US. It will impact both our industry and its supply chain.
“We estimate that 25 per cent tariff on Single Malt Scotch Whisky will see exports to the US drop by as much as 20 per cent in the next 12 months, as Scotch Whisky will become less competitive in the US market.
"In time, consumer choice will diminish and Scotch Whisky companies will start to lose market share. "In Scotland and throughout our UK supply chain, we expect to see a dropping-off in investment and productivity.
"Ultimately, jobs could be at risk."
Ms Betts said she expects the damage to the industry to mirror that caused to exports of American whiskies to Europe since the EU imposed a 25 per cent tariff in July, last year.
She commented: "That tariff has done nothing other than damage an industry very similar to, and closely linked with, our own.
"Alongside American whiskey companies, we have called on the UK, US and EU governments for many months now to find a negotiated solution to the trade disputes that have given rise to these tit-for-tat tariffs, and to ensure that duty-free trade can resume between the UK and the US to the benefit of whisky producers, their employees, the communities we work in, and consumers everywhere.
“We now need the UK and Scottish governments to work together to ensure distillers can weather the storm.
"We want them to consider a range of support to the industry, including reducing the UK tax burden on Scotch whisky in the Autumn Budget. This will provide an important lifeline while efforts continue to remove the tariffs."
The value of Scotch whisky exports to the US grew from £280m in 1994 to over £1bn last year.
