USA retains 25% whisky tariff

The USA has retained its 25% tariffs on EU exports to America, meaning that Scotch Whisky will still be subjected to the controversial tariff.

USA retains 25% whisky tariff

The tariff, which affects both Single Malt Scotch Whisky and Whisky Liqueurs, was implemented on the 18th of October last year after the industry enjoyed 25 years of tariff-free across-Atlantic trade.

However, Scotch Whisky managed to evade an increase in the tariffs, where aircraft makers such as Airbus and aeroplane parts form the EU face an increase from 10% to 15%, the BBC reports.



The retention of the tariff arrives after last week the Scottish Whisky Association (SWA) announced that exports had surged despite the uncertainty created by the implementation of the tariffs.

The export of global Scotch Whisky exports grew by 4.4% to £4.91bn, with growth in more than 106 of its global markets. The number of 70cl bottles exported also increased, growing to the equivalent of 1.31bn, up 2.4%.

Last month, representatives of the UK and US whisky industries also called upon the UK and US governments to urgently find a negotiated solution to unrelated trade disputes and to remove all tariffs on distilled spirits.

Commenting on the USA’s decision to maintain the tariffs, Karen Betts, chief executive of the SWA, said: “We’re deeply disappointed that a 25% tariff remains in place on exports of Single Malt Scotch Whisky and Liqueurs to the United States.

“This tariff has now been in place for four months and is hitting Scotch Whisky producers hard, particularly small distilleries. We’ve seen a significant drop in exports already, and based on this we believe we could be facing at least £100 million in lost exports over a year.

“The EU, US and UK must now redouble their efforts to resolve transatlantic trade disputes quickly, so that Scotch and American whiskies can return to the tariff-free trade from which we have benefitted for more than 20 years. It cannot be right that our industry is continuing to pay the price of trade disputes that have nothing to do with our sector.

“It’s critical to us that UK-US trade talks now prioritise the urgent, early removal of all tariffs on whiskies. As a first step, we welcome the Prime Minister’s commitment that the UK government will remove EU tariffs on US whiskey as soon as possible now that the UK has left the EU. The UK Government must work to ensure that the US reciprocates.

“Closer to home, the UK and Scottish governments must now act without delay to mitigate the impact that tariffs are having on Scotch Whisky businesses across Scotland. While it will not compensate for losses in the US, a cut to excise duty on spirits in the March Budget would go some way to helping Scotch Whisky businesses strengthen their presence in the UK to counter-balance losses in the US.”

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