UK & USA: US suspends single malt Scotch whisky import tariffs for four months

It’s been a day of good news for the Scotch whisky industry, Forbes reported on March 3.

Following the announcement that the U.K. government wouldn’t raise taxes on alcohol, the U.S. has announced that it is suspending tariffs for four months on a number of goods produced in the U.K., including single malt Scotch whisky.

The Scotch whisky industry had lost £500 million ($700 million) in business from the tariffs and exports had plunged to a 10-year low, so understandably this is a big relief for the industry.

The tariffs, which had also affected many other products including cheese and cashmere, stem from a long-running WTO case around planes that evolved under the Trump administration to a tariff war that affected hundreds of goods.

Scotch Whisky Association CEO Karen Betts is understandably quite thrilled:

“This is fabulous news, and our industry is delighted. The tariff on Single Malt Scotch Whisky exports to the US has been doing real damage to Scotch Whisky in the sixteen months it has been in place, with exports to the US falling by 35%, costing companies over half a billion pounds.

“So today, everyone in our industry – from small companies to large – is breathing a sigh of relief. Suspending these tariffs – stemming from a transatlantic trade dispute that had nothing to do with us – and a return to tariff-free trade with the US means livelihoods and communities across Scotland will be protected. It means that companies can now really focus on recovery – on building back the American market as well as on building back global exports hit by the coronavirus pandemic.”

The move follows the U.K. unilaterally dropping tariffs on many U.S. goods following its exit from the European Union, including American vodka, rum, and brandy. However, a 25% tariff on whiskey is still in place at the time of writing.

For now, the Scotch whisky industry can breathe a sigh of relief, though it will certainly hope that the suspension can evolve into something more permanent soon.

04 March, 2021