Whisky tariffs move a ‘lose-lose’, says MP
A local politician has written to the American ambassador calling on the US to scrap tariffs imposed on Scotch whisky.
Ochil and South Perthshire MP Luke Graham said the tariffs were a“lose-lose situation”and would put distilleries across Perth and Kinross at risk.
The Trump administration has imposed a 25 per cent import tariff on Scotch whisky in the next stage of an ongoing trade war with the EU.
The issue has been simmering for decades, with the US filing a complaint to the World Trade Organisation (WTO) regarding European assistance to an airline manufacturer in the form of below-marketrate loans that were often forgiven.
The complaint was upheld and the WTO has given permission for the US to impose tariffs worth $7.5 billion, or £6.2 billion, on goods coming from the European Union. The tariffs took effect on October 18.
The US is the single largest market for Scotch whisky. Single malt Scotch whisky exports to the US in 2018 were worth over £380 million, and the industry is set to bear the burden for half of the tariffs levelled against the UK as part of the EU-wide retaliation.
Mr Graham, who has the Glentrurret, Tullibardine, and Strathearn distilleries in his constituency, said:“The tariffs that are about to be imposed pose a big risk to my constituency, which is home to some of the best distilleries in Scotland.
“But it’s not just whisky that will be harmed, it will affect the whole supply chain. This tariff will increase the costs for American voters and will affect the American bourbon industry, as we use their casks to age our spirits here. The tariffs will be a lose-lose situation.
“I have written to the American ambassador regarding this, and I have asked the government to make contingency plans by freezing spirits duty for a third year in a row.”
There are a further three distilleries in Highland Perthshire - Aberfeldy, Blair Athol and Edradour.
Perth and North Perthshire MP, Pete Wishart, also slammed the move.
He said:“These crippling tariffs could have a disastrous impact on the whole Scotch whisky industry and the jobs they sustain throughout Scotland.
“Whisky is one of our main exports and we must ensure that we do everything possible to engage with the Americans and have these tariffs reversed.”