Scotch whisky producers sound alarm as US slaps tariffs on EU goods
Scottish whisky producers have warned that the US’s new 25 per cent tariffs on imports of single malt Scotch, which have come into force today, are “very bad news for our industry”.
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The Scottish whisky business is just one of many across Europe that is bracing itself for financial pain after the US slapped 10 per cent and 25 per cent tariffs on selected European Union goods including French wine and Italian cheeses.
The tariffs follow a World Trade Organization (WTO) ruling that gave the US the green light to impose up to $7.5bn (£5.8bn) of tariffs on the EU over illegal subsidies given to European aerospace firm Airbus. It was the biggest award in the WTO’s history.
European stock markets were marginally lower this morning despite a Brexit deal having been reached between the UK and EU as the tariffs weighed on investor sentiment. Companies fear this could be the start of a trade war between the two economic giants.
The Scotch Whiskey Association (SWA) today called for an end to the trade dispute and said the tariffs could cause exports to the US drop by as much as 20 per cent in the next 12 months.
The US is Scotch whisky’s most valuable single market, with over £1bn of the spirit exported there last year.
“In time, consumer choice will diminish and Scotch whisky companies will start to lose market share,” the SWA said.
“In Scotland and throughout our UK supply chain, we expect to see a dropping-off in investment and productivity. Ultimately, jobs could be at risk.”
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The US Trade Representative’s office said last week: “We expect to enter into negotiations with the European Union aimed at resolving this issue in a way that will benefit American workers.”
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