Tariff update: Uncertainty for domestic wine and spirits producers
Following the striking down of Trump’s tariff regime by the Supreme Court, the US president announced on Saturday (21 February) that he would introduce a global tariff rate of 15%. This could provide yet another headache for UK drinks exporters who may see duties on products travelling across the pond rise.
The UK was one of the few nations to potentially see its existing US levy average increase. According to research from Global Trade Alert, the new 15% global levy will see the average tariff rate for UK exports to the US rise by 2.1% – the highest increase of any country due to Saturday's decision.
Nicola Bates, CEO of Wine GB, reflected on the latest revelation to Harpers: “The US is a growing market for our domestically produced wine, easily within our top ten trading countries; of all the export markets we operate within, the US has the potential to fully embrace a UK category, like we have seen in Norway. While we await more detailed information on what this proposed new 15% tariff means in practice, there is meaningful demand for high quality English wines, and we are seeing genuine forward momentum and interest.
“If this change comes to fruition it will simply make it harder and more costly to do business in the US with the cost ultimately born by the consumer. We are seeing unprecedented year on year export sales growth of 35% and we are nearing 10% of UK wines going to international sales. It would be a shame for the tariff to inhibit further growth.”
The Scotch whisky sector is highly exposed to changes in US tariffs. For 2025, exports to the US were worth £993m for the sector, though they had taken a 4% hit year on year in light of earlier tariff introductions, as reported by Harpers.
A spokesperson for the Scotch Whisky Association, added: “The increase in the US tariff on Scotch Whisky from 10% to 15% is deeply worrying.
“We, alongside industry counterparts in the US, urge governments on both sides of the Atlantic to double efforts to secure a deal that permanently returns to zero-tariff trade for Scotch Whisky. In the meantime it is vital, given the pressures on the Scotch Whisky industry, that the UK government reduces the crushing cost burdens on the sector, including the most recent rise in spirits duty.”
The British Chamber of Commerce (BCC) estimates the new tariff outlook for the UK could cost domestic businesses between £2-3bn.
William Bain, head of trade policy at the BCC, commented: “This will be bad for trade, bad for US consumers and businesses and weaken global economic growth. Businesses on both sides of the Atlantic need a period of clarity and certainty. Higher tariffs are not the way to achieve that.”
Despite the uncertainty, Bain believes “the one ray of light” is that after 150 days the new levy arrangements will need to be approved by US congress.
He added: “It is now vital that the government and business continue dialogue with their US counterparts to retain the UK’s competitive advantage and reduce tariffs as far as possible.”
Image credit – Frank Wintermeyer from Pixabay
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