Whisky industry welcomes end of damaging US tariffs on single malt exports
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The US has agreed to suspend tariffs on UK goods including single malt whisky that were imposed in a long-running row over subsidies to the aircraft maker Airbus.
They will also be lifted on other UK goods including cheese, cashmere and machinery.
The duties are to be suspended for four months initially while the two countries seek a long-term settlement.
The announcement has been welcomed by the whisky industry, unions and politicians who said the 25 per cent tariff had been very harmful on the industry.
On 1 January, the UK dropped its own tariffs on some US goods following Brexit.
They had been put in place over a related dispute about US subsidies to Boeing.
Karen Betts, head of the Scotch Whisky Association, described the suspension of tariffs "fabulous news".
She said: "The tariff on single malt Scotch whisky exports to the US has been doing real damage to Scotch whisky in the 16 months it has been in place, with exports to the US falling by 35 per cent, costing companies over half a billion pounds.
"So today, everyone in our industry - from small companies to large - is breathing a sigh of relief."
Highlands MSP Edward Mountain MSP (Scottish Conservative) commented: “Our whisky distilleries in the Highlands will be raising a glass in celebration at the four-month suspension of these damaging tariffs.
“This will also be welcome news for farmers and will put a spring in their step as they start sowing their barley crops for the distilleries.
“Our Scotch whisky distillers have suffered huge losses as a result of the trade war between the US and EU.
"Indeed, one of the benefits of being outside of the EU is that the UK can now negotiate trade itself and resolve the issue of punitive tariffs which impacted whisky and cashmere producers.
“I welcome this progress and it highlights how the UK Government continue to stand up for Highland businesses and support thousands of jobs too.”
Fellow Scottish Conservative regional Highlands MSP Jamie Halcro Johnston agreed it is a massive boost for the industry in the region.
“This is fantastic news and so important for the Highlands and Islands," he said.
“Everyone who works in the whisky sector will be raising a dram to the UK’s International Trade Secretary Liz Truss for her efforts, and those of her team, in securing this important agreement.
“The US market is massive for our producers and it was iniquitous that a trade dispute with the EU over aviation should have led to tariffs in the first place.
“That injustice has now been reversed and our distilleries, which are so important for jobs and livelihoods across the Highlands and Islands, can now look forward to a major boost in this vital market.”
GMB Scotland Secretary Gary Smith said: “This is welcome news for Scotland and workers across our whisky and spirits sector, but amid the political backslapping, government and industry should pay tribute to the efforts of those workers on both sides of the Atlantic who fought long and hard to stop these tariffs.
“It should be a moment of reflection for the UK Government, not celebration.
"The economic damage has been done and livelihoods have been lost because Ministers failed to recognise the importance of this industry to Scotland and Britain from the outset of this tariffs war.
“The lessons need to be learned because whisky and spirits manufacturing is essential to the prosperity of the Scottish economy and it will be a cornerstone of Britain’s post-Covid recovery – it’s that important.
“Moving forward, Ministers must understand we won’t accept anything less than a trade deal with the US that protects and grows production and jobs, and the industry must understand that we will expect proper value for the workers who will deliver that future.”
