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US tariff on single malt whisky 'very bad news' for industry


By Gordon Calder

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A TWENTY-five per cent tariff on single malt whisky, which comes into effect today, has been described as "very bad news" for the industry.

Karen Betts, chief executive of the Scottish Whisky Association (SWA), was speaking after the measure was implemented by the American government as part of a trade dispute with the European Union.

She said: "That single malts are being targeted is particularly damaging for smaller producers, who stand to be the hardest hit. This is very bad news for our industry.

"Scotch whisky has been imported tariff-free to the United States for the last 25 years. This move undermines decades of hard work and investment which has seen Scotch whisky sales boom in the US. It will impact both our industry and its supply chain.

"We estimate the tariff will see exports to the US drop by as much as 20 per cent in the next 12 months. In Scotland and throughout our UK supply chain, we expect to see a dropping-off in investment and productivity. Ultimately, jobs could be at risk."

SWA chief executive Karen Betts.
SWA chief executive Karen Betts.

Ms Betts added: "We expect the damage to our industry to mirror the damage caused to exports of American whiskies to Europe since the EU imposed a 25 per cent tariff in July 2018. That tariff has done nothing other than damage an industry very similar to, and closely linked with, our own."

She has urged the UK, US and EU governments to find a negotiated solution to the trade disputes.

Colin Clark, UK Government minister for Scotland, is "deeply disappointed" by the move. He said: "The whisky industry is a cornerstone of Scotland’s economy, employing around 11,000 people, many in rural areas.

"It is one of our greatest exporting success stories. We need to ensure this continues. We are in close contact with the SWA to make sure they know how seriously we take this issue."


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