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Whisky chiefs pledge to ‘build back’ exports after US tariffs suspended

Whisky industry representatives have said now is the time to begin “building back global exports” hit by the coronavirus pandemic after the US suspended tariffs.

Washington will temporarily halt tariffs on a range of goods, cutting the 25% tariff rate on Scotch whisky to 0% for four months, according to the Department for International Trade.

Exports to the US have fallen by 35% over the 16 months the measures have been in force, costing companies more than half a billion pounds, according to the Scotch Whisky Association (SWA).

Karen Betts, SWA CEO, said: “This is fabulous news, and our industry is delighted.

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“Suspending these tariffs, stemming from a transatlantic trade dispute that had nothing to do with us, and a return to tariff-free trade with the US means livelihoods and communities across Scotland will be protected.

“It means that companies can now really focus on recovery: on building back the American market as well as on building back global exports hit by the coronavirus pandemic.

“I want to pay tribute in particular to the hard work of Liz Truss, International Trade Secretary, and her team.

“Her commitment to finding a resolution of this issue, alongside Kwasi Kwarteng, Business Secretary, has been very encouraging through what has been a particularly difficult period for our industry.

“Distillers will certainly be raising a dram to her tonight.”

Donald Trump’s administration hit the European Union with tariffs on £5.6 billion worth of goods in retaliation for state support given to Airbus, with products including Scotch whisky badly affected by the measures.

Coronavirus – Sun Jan 31, 2021
Trade Secretary Liz Truss has helped to negotiate the suspension of US tariffs on whisky (Leon Neal/PA)

The EU responded with tariffs on £3bn of American goods over subsidies given to Boeing, but the UK presented an olive branch to the US by announcing its decision to suspend tariffs from January.

Biden’s administration has now moved to reciprocate by suspending tariffs on a range of goods, in an effort to reach a negotiated solution to the dispute.

Prime Minister Boris Johnson said on Thursday that the measures, due to come into force on Monday, would benefit businesses across the UK.

But the SWA has urged politicians to continue working to find a more permanent solution to the row.

Ms Betts added: “The UK government and the new US administration will now need to work hard on finding a negotiated settlement to this long-running aerospace dispute.

“We hope that both governments will be able to find a rapid, pragmatic solution to the steel and aluminium dispute which still impacts US whiskey exports to the UK.”