'Sigh of relief' for Moray distillers as US suspends damaging tariffs on single malt Scotch whisky

DISTILLERS are today "breathing a sigh of relief" as the US suspends damaging tariffs on single malt Scotch whisky and other goods for four months.

The suspension, taking effect from today, follows a move on January 1 by the UK to drop its tariffs on some US goods.

The two sides will seek a long-term agreement over the suspension period.

Former president Donald Trump imposed a 25 per cent tariff, in October 2019, on imports of single malt Scotch whisky to the US amid a long-running dispute over EU and US subsidies to Airbus and Boeing.

Scotch and American whiskies had traded tariff-free across the Atlantic for more than 25 years previously.

The Scotch Whisky Association (SWA) issued warnings since that the situation was harming investment, productivity, jobs and growth.

Chief executive of the SWA Karen Betts said today: "This is fabulous news, and our industry is delighted.

"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.

"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.

"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."

Scottish Conservative MP for Moray Douglas Ross said the suspension was great news for Moray’s biggest industry and some of the region's biggest employers.

Mr Ross said: "I have been urging UK ministers to come to an agreement with the new administration in the US, and I am delighted to see that has happened.

"This four-month suspension of the hugely damaging tariffs will give both sides the chance to find a lasting solution.

"I am sure this news will be welcomed by distillers across Moray and Johnstons of Elgin who were also impacted by the tariffs on textiles.

"The whisky sector, which is so vital to Moray and the wider UK, has suffered enormous losses while this dispute has been going on.

"I hope this will now be the start of an improved relationship as we all seek to build back from the pandemic.

"The US remains the biggest export market for Scotch whisky, and we all want to see continued growth in the sector to protect and create more jobs here in Moray and across the country."

Moray SNP MSP Richard Lochhead said: "I warmly welcome the long overdue suspension of US tariffs on Scotch whisky and cashmere which will be a huge relief for these important local industries in Speyside and Moray.

"Combined with Brexit and the impact of Covid, these tariffs were damaging the sectors.

"Hopefully, given the impact of this dispute over subsidies in aviation that has affected the backbone of Moray’s economy can now be settled permanently as it had been dragging on for far too long."

Highlands and Islands Conservative MSP Jamie Halcro Johnston added: "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 GMB Union, however, said lessons needed to be learned.

The union's Scotland secretary, Gary Smith, said: "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."