Distillery chief believes US tariff will go for good

ONE of Scotland’s most decorated distillers has expressed his confidence that the five-year suspension of US tariffs on single malt will turn into a permanent solution, writes Scott Wright.

The Scotch whisky industry received a massive boost this week when the UK and US Governments agreed a ceasefire on a trade dispute that has its roots in a row between Washington and the European Union over aircraft subsidies. It followed a temporary suspension of the tariffs in March.

The imposition of a 25 per cent tariff on single malt by the Trump administration in October 2019 is understood to have cost the Scotch whisky industry more than £500 million in lost exports.

The latest deal means no tariffs will be applied for five years while a permanent agreement is pursued.

Reacting to the tariff suspension, Billy Walker, head of the Glenallachie Distillery in Speyside, told The Herald: “This looks pretty permanent to me. Five years is a long time in anyone’s life. [The fact] tariffs are removed is huge testimony to the efforts put in by the Westminster Government and Karen

Betts of the Scotch Whisky Association. It is fantastic, they have done a really good job and they have not taken their eye of the ball.”

Mr Walker, who acquired Glenallachie with Graham Stevenson and Trisha Savage in 2017 after selling the Benriach Distillery Company the year before, said his business was now able to plan with more “clarity” how to approach the US market, “which stumbled a wee bit because of these obstacles to entry”.

He said: “In terms of a fiveyear plan, that is terrific. Now you can plan.”

Mr Walker also welcomed the trade deal signed between the UK and Australia this week, which removed tariffs of up to five per cent on exports of Scotch whisky. While he acknowledged Australia would never be his company’s biggest market, he said the deal is “important”.

Mr Walker noted: “It’s not a huge market at the moment, but there is no reason why it can’t [be]. It is absolutely in our footprint. It is market where we can engage with informed consumers.”