Amid concerns that Scotch whisky could once again be subject to American tariffs, the UK’s trade policy minister has called for calm and a pragmatic approach.
Douglas Alexander stressed the need for “cool heads rather than a hot take” regarding potential new levies on Scotch whisky imports.
Alexander’s comments come as former US President Donald Trump has hinted at the possibility of imposing tariffs on goods entering America, raising fears that Scotch whisky could be targeted, as it was in the past.
A 25% tariff imposed in October 2019 resulted in significant losses for the Scottish whisky industry, amounting to hundreds of millions of pounds, before being suspended for five years in 2021.
Prime Minister Keir Starmer’s recent visit to Washington has sparked hopes that such trade barriers can be avoided. Trump himself has suggested that a “real trade deal” between the US and UK could eliminate the need for tariffs altogether.
Speaking to The Scotsman, Alexander, who also serves as the MP for Lothian East, emphasised the UK Government’s commitment to a sensible approach. “I think the honest approach and the sensible approach at this stage is to have cool heads rather than a hot take,” he stated.
He also acknowledged the ongoing dialogue between the Scotch Whisky Association and the bourbon industry in the United States, recognising their historical effectiveness as advocates for the spirits industry.
In related news, Alexander addressed the application for protected geographical status for English single malt whisky. He clarified that the application was submitted to the Department for Environment, Food & Rural Affairs (Defra) and was not initiated by the government itself.
Reaffirming his support for the Scottish whisky industry, Alexander stated: “I’m very clear as to the distinctiveness, the specialness and the importance of Scotch whisky.”
