Concern for impact on Scotch whisky after US Presidential election

Donald Trump imposed a heavy tariff on Scotch in his last term in the White House

For almost 17 months from 2019 the Scotch Whisky Association said there were "hugely damaging" tariffs
Author: John RosePublished 6th Nov 2024

There could be "real difficulties" ahead for the Scotch whisky industry resulting from potential tariffs imposed by the incoming Trump administration in the US, John Swinney has said.

The First Minister defended his endorsement of Kamala Harris during the election campaign, saying it is important that politicians "set out their views".

He has congratulated Mr Trump on his victory in the US election, which was confirmed on Wednesday morning, saying he would welcome the president-elect if he decides to come to Scotland.

As part of a wider trade dispute with the EU, the previous Trump administration imposed a 25% tariff on imports of single malt Scotch whisky - one of Scotland's most valuable industries.

The tariffs lasted between October 2019 and March 2021, with the Scotch Whisky Association saying they lost £600 million in exports and describing them as "hugely damaging". They are next due to be reviewed in June 2026.

The First Minister spoke to journalists after visiting the Scotch Whisky Experience visitor attraction in Edinburgh.

He said: "There is the potential for there to be some real difficulties ahead for the Scotch whisky industry, and other industries, because the United States market is very significant."

Any re-imposition of tariffs must be avoided "at all possible costs", he said.

Mr Trump has said he would impose tariffs on all imports to the US, something which economists warn would slow global economic growth and worsen inflation in the US.

Mr Swinney also discussed the future of US support for Ukraine as its war with Russia continue, saying it is "really important" that solidarity with Ukrainians is maintained.

He said: "We'll have to to wait and see what emerges out of the specific commitments made by the United States in the wake of the election of President Trump.

"I would argue that it's in the interests of Europe, the United Kingdom, and the United States to repel the Russian aggression in Ukraine."

Mr Swinney's endorsement of vice president Harris last week drew ire from Trump International, which owns courses in Aberdeenshire and South Ayrshire, which called it "appalling".

Asked about this, the SNP leader said it is important that politicians "set out their views" when asked questions.

The Scotch Whisky Association, the trade organisation for the industry, said tariff-free trade would benefit producers of alcoholic spirits on both countries.

A spokesman said: "As Prime Minister Keir Starmer has said, the UK and US stand shoulder to shoulder and are partners in enterprise.

"To deepen this partnership, the US and UK administrations should agree to maintain the zero-tariff trade of whiskies across the Atlantic."