Javid could water down Trump’s 25% whisky tariff blow
Truss hints Chancellor plans help in Budget
BY TORCUIL CRICHTON Westminster Editor EXCISE duty on Scotch whisky could be reduced in next month’s Budget to offset the effect of the 25 per cent tariff slapped on Scotch whisky by Donald Trump.
Chancellor Sajid Javid is said to be considering giving the industry a tax break after the US president stonewalled UK appeals to exempt whisky from sanctions.
The 25 per cent tariff on US imports of Scotch single malts is being introduced today.
It is part of a series of hikes worth £6.1billion on goods from the European Union in retaliation for subsidies the EU gave to plane-maker Airbus that the World Trade Organization last year ruled were illegal.
Responding to questions in the Commons, International Trade Secretary Liz Truss suggested Javid could move on the frozen rate of duty on Scotch to help small distilleries which will be affected by the tariff.
Truss told MPs: “The Chancellor is currently in the US speaking to his counterpart. We are putting on as much pressure as we can over this issue.
“We will also be looking at measures to help the industry here in the UK.”
Truss also insisted that Britain will not roll over in a future trade deal with the US as she urged Trump to reverse tariffs on key exports. Prime Minister Boris Johnson raised concerns about planned tariffs on Scotch whisky with Trump in talks last week but failed to get any assurances. In the Commons, former Tory Scottish secretary David Mundell asked if the Government would consider offering to exempt US bourbon whiskey from any tariffs after Brexit.
Truss replied: “When we leave the EU, clearly the UK will be responsible for its own tariff policy.
“At this point, we are part of the EU and we are part of those overall discussions on tariffs, so we cannot make that type of statement at this time.
“The point I have been making to the US is it is not going to help our relationship.”
Industry body the Scotch Whisky Association estimates that the tariff on single malts will see exports to the US drop by up to 20 per cent in a year, putting thousands of jobs at risk.
Chief executive Karen Betts said: “We now need the UK and Scottish governments to work together to ensure distillers can weather the storm.
“We want them to consider a range of support to the industry, including reducing the UK tax burden on Scotch whisky in the autumn Budget.
“This will provide an important lifeline while efforts continue to remove the tariffs.”