Suspension of tariffs on exports of Scotch whisky to the US
As British Trade Secretary Liz Truss informed on her Twitter account, the United States and the United Kingdom agreed to suspend high duties on Scottish whisky exports to the United States. Both sides agreed to lift tariffs of 25% on single malt Scotch whisky, as well as remove tariffs on cashmere, machinery and other products, and pledged to de-escalate the Boeing-Airbus dispute that was the cause of the customs war that has been going on since October 2019, which cost the Scotch whisky industry £ 500m.
For now, the tariff suspension is expected to last 4 months, but both the American and British administrations are committed to de-escalating the problem and resolving the dispute permanently.
Scotch Whisky Association CEO Karen Betts commented on the good news:
„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.”
Karen Betts also expressed special appreciation to Liz Truss, Secretary of International Trade, and her team, thanking them for their commitment to solving the problem. The UK and US governments now face the task of negotiating a lasting solution.
