Scotch whisky slapped with 10% US tariffs
Scotch whisky will be impacted by the latest round of tariff announcements from the US, which will see UK products heading stateside whacked with an additional 10% levy.
Last night (1 April), US President Donald Trump imposed tariffs of 10% on all British exports to the US with immediate effect.
A spokesperson for the Scotch Whisky Association simply said they were “disappointed that Scotch Whisky could be impacted”, although they welcomed “the intensive efforts by the UK government to reach a deal with the US administration. We continue to support this measured and pragmatic approach towards a mutually beneficial resolution”.
Others were less measured in their response.
William Wemyss, founder and chairman of Wemyss Family Spirits near St Andrews, called the latest round of tariffs “a damaging setback for our industry”.
He continued: “As a small, family-owned Scotch whisky business, we rely on stable, tariff-free trade to grow, invest and bring our products to whisky lovers across the Atlantic. The US is our single largest export market, and demand remains strong, but tariffs inject real uncertainty, particularly for independent producers like us.
“At Kingsbarns, we’re also seeing the wider impact. American visitors make up a large part of our tourism business in St Andrews. If tariffs fuel inflation or restrict consumer spending in the US, it risks fewer golf travellers, fewer distillery visits and a knock-on effect on local jobs.”
Economically, the tariffs will likely have a palpable impact reminiscent of 2019.
On 18 October 2019, an ad valorem import tariff of 25% was applied on all Single Malt Scotch Whisky and Scotch Whisky liqueurs entering the US, which ultimately led to a loss £600m over a period of 18 months.
These tariffs were not a result of trade policy introduced by Trump, however they cast a long shadow over the category’s finances. The US is the most important overseas market for Scotch, worth just under £1bn a year.
Wemyss is still holding out for an exemption for Scotch as a protected product which can only be produced in Scotland.
“Given that unique status, we believe there’s a strong case for treating Scotch differently in future trade discussions, in a way that recognises its heritage and longstanding appeal to US consumers,” he said.
According to The Times, yesterday’s announcement will impact all of the UK’s £60 billion worth of annual exports to the US, with economists warning more generally that the tariffs could completely wipe out growth in the UK economy next year.
However, Britain was hit less hard than most countries. The EU is facing tariffs of 20%, Japan 24% and China 34%.
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