US Tariffs on Scotch Whisky
Let's Call Time On Tariffs
Scotch Whisky and American Whiskey distillers are caught in a trade war, which has nothing to do with us.
The Scotch Whisky industry has been hit by a 25% tariff on Single Malt going into the US. The tariff has been in place since October 2019, and Scotch Whisky exports have fallen by more than 30%, worth over half a billion pounds. Likewise, American whiskey distillers have now had a 25% tariff in place on their exports into the EU for two years, which has meant that their exports have fallen by a third in that time.
These tariffs are not only causing short-term losses to the industry, but also long-term harm to the Scotch Whisky category, since the market share lost as a result of tariffs could take years to rebuild.
The SWA is urging the UK government urgently to call for the immediate suspension of all tariffs on unrelated sectors, and a resolution to the aerospace dispute by addressing UK violations of WTO rules on subsidies.
What does that mean?
Scotch Whisky is one of Scotland’s and the UK’s most important industries. We employ 11,000 people in Scotland, and our sector’s supply chain supports 40,000 jobs throughout the UK. Scotch is worth over £5.5bn to the UK economy.
- Coupled with the impact of COVID-19, the damage that tariffs are causing could result in job losses in the UK and US.
- Whisky fans see their choices diminish, and favourite products could become harder to find.
- Whisky tariffs are bad for Scotland’s local communities that rely on free trade with the US to boost the economy. They mean that Scotch is losing market share in the US, which cannot be recovered overnight.
How can you help?
We’re doing everything we can to ensure that the UK government knows what the Scotch Whisky sector is up against, but you can help, too.
Whether you live and work in the communities for whom Scotch is a lifeblood industry, if you’ve enjoyed a tour or a tasting in one of Scotland’s distilleries, or if you simply enjoy savouring a dram: let your MP know how you feel.
- Tell them to #CallTimeOnTariffs by urging the UK government to act fast, to support the International Trade Secretary in finding a deal to end the tariffs.
- Let them know how important the Scotch Whisky industry is to the economy as we recover from COVID-19
Contact your MP
- Find the contact details of your MP by putting your postcode into https://www.writetothem.com/
- Your local MP is displayed, click their name
- Copy and paste the suggested letter here – please change as necessary
- Provide your full name and address – needed when contacting MPs
- Send the letter to your MP via email
Tell us you have emailed your MP by emailing email@example.com so we can keep you in touch about our campaign to end tariffs
Tweet your MP
- Find the twitter handle of your MP by putting your postcode into https://www.theyworkforyou.com/
- Tweet them to let you know you think they should help #CallTimeOnTariffs – remember to include the hashtag!
Tariffs on #ScotchWhisky continue to do severe damage to an iconic industry: over half a billion in lost exports.
I’ve just written to [insert MP’s Twitter handle] to ask the UK Government to #CallTimeOnTariffs
Learn more and take action here: http://bit.ly/CallTimeOnTariffs
In October 2019, a 25% tariff was imposed by the US government on imports of Single Malt Scotch Whisky. This tariff, and retaliation imposed on additional UK and European products at the same time, was awarded to the US by the WTO under the Boeing/Airbus trade dispute because of subsidies given to Airbus by EU member states including the UK. Since the tariff was imposed, exports of Scotch Whisky to the US have fallen by more than 30%, amounting to over half a billion pounds in lost exports.
The UK Government must act swiftly to defend UK interests, including Scotch Whisky. Now the UK has left the EU, it is no longer appropriate for the EU to negotiate in the Airbus/Boeing dispute and other trade disputes on the UK’s behalf. Instead, the UK government can now forge its own path in resolving these disputes.
Our industry supports the UK-US trade negotiations, believing there is much to be gained for us and other sectors in a good deal with the US. But clearly tariffs need to be addressed and resolved in these talks too. The SWA is urging the UK government urgently to call for the immediate suspension of all tariffs on unrelated sectors. At the same time, they say that the UK must work to resolve the aerospace dispute by addressing UK violations of WTO rules on subsidies and by agreeing a future regime of support to aerospace with the US – as soon as the new US Trade Representative assumes office – that is WTO compliant. Only then will the tariffs be permanently lifted and the UK government be in a position to live up to its aspiration to be a champion for free and fair trade within the international, rules-based system.
Learn more about tariffs and how they affect international trade for Scotch Whisky producers.
US Tariffs on Scotch Whisky news & commentary
SWA comments on suspension of US Tariffs
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SWA calls for end to damaging trade war as 25% tariff to US comes into force
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SWA statement on US Tariffs for Scotch Whisky
The SWA responds to US import tariffs on Scotch Whisky.