US may target Scotch whisky as it issues new EU tariffs list threat
● Long-standing row over Airbus and Boeing behind growing trade war
Scotch whisky is among the products targeted by the United States for a possible range of new tariffs on imported goods in a threatened trade war.
The dispute, which could see tariffs imposed on European imports worth up to £3.2 billion, centres round a 15-year battle over aircraft subsidies.
The US is the world’s largest export market for Scotch whisky by value, worth £1.04bn in 2018.
In April the US announced proposed tariffs of $11bn (£8bn) on EU goods.
Yesterday the US Trade Representative’s office announced Scotch whisky, olives, Italian cheese and a range of metals were being added to the list. The date for the tariffs is unknown.
The row at World Trade Organisation (WTO) concerns a disagreement between the US and the EU over subsidies given to Airbus from Europe and its US rival Boeing.
Both sides claim the other has benefited from unfair government subsidies. The WTO has ruled in separate cases against both Airbus and Boeing.
A spokesman for the Scotch Whisky Association urged governments and the EU to act swiftly to resolve the crisis.
“The industry continues to urge politicians to find a way forward, which will involve compromise on all sides. Then we can move on to clarifying the terms of the UK’S future relationship with the EU.
“Exports of Scotch whisky to the US have been zero-tariff for 20 years, so it is disappointing Scotch whisky has been drawn into this dispute.
“The Scotch whisky industry has consistently opposed the imposition of tariffs, which harms economies on both sides of the Atlantic which depend on trade for their continued prosperity.
“There is a close relationship between the US whiskies and Scotch whisky, not least due to the use of bourbon casks for maturation generating around £70m for the US economy each year.
“We continue to urge the UK government, the EU and the US government to resolve this situation.”
Meanwhile, Gary Smith, secretary of GMB Scotland, warned the UK economy would suffer post-brexit.
“This is a troubling look into the post-brexit future and towards future trade negotiations with the US.
“If anyone thinks the UK economy isn’t a sitting duck then they are deluded – there will be no special relationships out there.
“It also exposes the fragility of the Scottish economy, where food and drink, and within it whisky and spirits, is the second biggest export sector.
“It reinforces our previous view that for Scotland there is no Brexit deal better than our current deal as members of the European Union.”