SWA
US tariffs could lead to a drop in the exports of Scotch whisky by 20%. Credit: Adam Jaime on Unsplash.

The Scotch Whisky Association (SWA) has urged the UK government to support the industry after the implementation of a 25% tariff on imports of single malt Scotch whisky and liqueurs.

Earlier this month, the US government announced the tariff on European products.

The decision to impose tariffs on the products was also approved by the World Trade Organization (WTO), allowing the US to force a charge worth $7.5bn on exports from European countries to the US.

SWA chief executive Karen Betts said: “A 25% tariff has today been implemented on US imports of Single Malt Scotch Whisky and Liqueurs. This is very bad news for our industry.

“It means that Scotch whisky is now paying for over 60% of the UK’s tariff bill for the subsidies it provided to Airbus, eight times more than the next most valuable UK product on the tariff list. That Single Malts are being targeted is particularly damaging for smaller producers, who stand to be the hardest hit.

“Scotch Whisky has been imported tariff-free to the US for the last 25 years. This move undermines decades of hard work and investment which has seen Scotch whisky sales boom in the US. It will impact both our industry and its supply chain.”

The trade organisation also estimated that the tariff could lead to a drop in the exports of Scotch whisky by 20% over the next 12 months. Scotch whisky is expected to become less competitive in the US market.

SWA added that the situation could ultimately lead to loss of jobs in the country, as it would impact entire Scotland and the UK supply chain.

Betts added: “We expect the damage to our industry to mirror the damage caused to exports of American whiskies to Europe since the EU imposed a 25% tariff on July 2018. That tariff has done nothing other than damage an industry very similar to and closely linked with, our own.”