Day one of US whisky import tariffs
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SINGLE malt whisky exports to the US could dive by one-fifth within a year, Scotland's whisky trade body said today.
The Scotch Whisky Association (SWA) issued the warning on the day the US trade-war move to impose a 25% tariff on imports of single malt Scotch whisky comes into effect.
The US has imposed the tariff on Scotch whisky and knitwear, including cashmere, in response to EU tariffs on US products.
Single malt whisky is likely to be the biggest loser in the US dispute with the EU – and there are fears that ultimately jobs could be at risk.
Moray Conservative MP Douglas Ross said: "This is deeply disappointing and will have a huge impact on the sectors affected, particularly here in Moray.
"MPs across the House and the Government have worked hard to delay these damaging tariffs being applied but, sadly, that has not been successful.
"The key is that this is a dispute between the US and the EU so when we leave the European Union I know we will quickly work with the US Administration to remove these tariffs and allow our iconic Moray products to resume the tariff-free trade they have enjoyed with the US for many years."
Moray SNP MSP Richard Lochhead said: "The US Government’s decision to impose a 25% tariff on imports of Scotch whisky is a major blow for Speyside and Moray and will seriously impact investment, jobs, and our local economy.
"Some of Moray’s most iconic brands and products are set to be affected by these new tariffs – whisky, shortbread and cashmere are all on the list – and I know that Johnstons of Elgin have said the tariff will mean that they will export less, grow less, and downscale their plans.
"Trade wars have few winners and it is a travesty that Moray’s economy is set to take a hit as a result of tariffs that have been imposed in retaliation to the illegal subsidies that some EU countries, including the UK, gave to Airbus.
"Post-Brexit the UK Government is relying on the US for a trade deal and hoping for a sympathetic ear from President Trump – I think these new tariffs show just how dangerous that plan is and I worry that Moray’s key industries could be caught up as collateral damage.
"We need the UK Government to show more urgency on this issue – perhaps Boris Johnson could get on the phone to his friend in the White House and demand that these tariffs are scrapped."
SWA chief executive Karen Betts said: "This is very bad news for our industry.
"It means that Scotch whisky is now paying for over 60% 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 US 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 the 25% tariff on single malt Scotch whisky will see exports to the US drop by as much as 20% 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.
"We now need the UK and Scottish governments to work together to ensure distillers can weather the storm."
Under-Secretary of State for Scotland Colin Clark said: "We have been clear that resorting to tariffs is not in the interests of the UK, EU or US. These tariffs will not only have a significant impact on the export of aircraft and whisky but on many great Scottish industries such as textiles, including cashmere, and biscuits.
"The UK Government has raised the issue at the highest levels with both the EU and the US, including with President Trump and will continue to do so until these tariffs are dropped."
Last year Scotch whisky exports to the US were worth £1 billion. Single malts accounted for a large share.
