Trump threatens tariffs on Scotch whisky

13/12/2024

Scotland’s First Minister John Swinney has taken a proactive approach to protect the nation’s beloved whisky industry from potential tariffs under the incoming Trump administration.

In a recent 20-minute phone call, Swinney highlighted the economic and cultural importance of Scottish whisky to President-elect Donald Trump.

The Scottish whisky sector, which exports over £1 billion worth of spirits to the United States yearly, is concerned about possible new tariffs or a revival of trade disputes under Trump’s leadership.

These fears are rooted in Trump’s proposed broad import tariffs and the potential resumption of duties linked to the Airbus-Boeing disagreement.

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Swinney, who had previously supported Kamala Harris for the presidency, navigated the conversation carefully. While avoiding direct mention of tariffs, he emphasised the mutual benefits of cultural and trade ties between Scotland and the United States.

Trump, who owns two Scottish golf courses and often touts his Scottish heritage, agreed that Scottish whisky was indeed “a fine thing”.

The Scotch Whisky Association (SWA) has been actively lobbying US lawmakers, working alongside American industry partners such as the Distilled Spirits Council and the Kentucky Distillers Association.

Their aim is to prevent the reintroduction of the 25% duty imposed during the previous trade dispute, which reportedly cost the industry at least £600 million in lost sales.

The whisky trade between Scotland and the US is mutually beneficial. Scottish distillers buy about £235 million worth of bourbon casks annually, providing additional income for American producers.

The Guardian reported an SWA spokesperson said: “President Trump has not yet taken office, and the industry looks forward to working in partnership to build trade links which create jobs and investment in the US.”

“We fully support the early engagement by the UK government with the incoming US administration, highlighting the investment the Scotch whisky industry already brings to the US economy and the value it adds to the US hospitality sector.”

Furthermore, several well-known Scottish distilleries are owned by US-based companies, underscoring the interconnected nature of the spirits industry across the Atlantic.

As the new administration prepares to take office, the Scottish whisky industry remains optimistic for a favourable outcome, stressing its contributions to the US economy and hospitality sector.

The coming months will be crucial in shaping the future of this long-standing trade relationship.

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