US tariffs on Scotch whisky cost £500m in lost exports, says industry
By Caoimhe Toman
Date: Tuesday 02 Feb 2021
(Sharecast News) - Sales of Scotch whisky to the US have fallen over a third in what amounts to £500m lost in exports since tariffs were imposed by Washington, the industry's representative body said on Tuesday.
A 25% tariff was initially introduced in retaliation to the EU for giving financial support to Airbus in favour of Boeing. Scotch whisky was among the list of products that the US targeted as a response.
According to the Scotch Whisky Association, the figures suggest that since the levy was imposed on single malt whisky in October 2019, the industry was still suffering the effects of an aerospace dispute that has nothing to do with it.
The SWA's chief executive, Karen Betts, has described the current situation as "unsustainable".
"Since tariffs were put in place, our exports to the US have fallen by 35%, amounting to over half a billion pounds in lost exports. This is being borne by large and small producers alike, who are losing sales and market share in what has been for decades the industry's largest and most valuable market, which they may never now recover," she said.
"It's very hard for Scotch whisky producers to understand why the UK government is so unwilling to address the UK violations of World Trade Organization (WTO) rules on aerospace subsidies at the root of the tariffs."
Since the UK left the EU it could be seen as no longer relevant for Scotch whisky to pay the price for the Airbus-Boeing dispute.
Opposition Labour Party leader, Sir Keir Starmer, used a newspaper column last month to call on the UK government to negotiate with the new US administration of President Joe Biden and reverse the tariffs.
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