US tariffs on UK goods to be suspended for four months

The US has agreed to suspend millions of pounds' worth of tariffs on UK exports, reducing the 25% tariff rate on Scotch whisky to 0% for four months.

The US and the UK have agreed a joint de-escalation in the long-running trade conflict over aerospace tariffs, according to the Department for International Trade.

Washington will temporarily suspend all retaliatory tariffs on direct exports from the UK to the US.

As well as Scotch Whisky, this also includes removal of tariffs on cashmere, machinery and other products.

The agreement is due to come into force on Monday.

International Trade Secretary Liz Truss said: "I am delighted to say that our American allies - under their new president and his hard-working staff at the US Trade Representative - have embraced our move to seek a fair settlement.

"The benefits will be felt across our nation, especially in Scotland, where Scotch whisky distillers will be able to sell at lower prices in the United States, their most valuable market.

"The easier it is for Americans to buy a bottle of Macallan, Talisker or Glenfiddich, the more money those producers will have to invest in their businesses, their staff and futures.''

Chief Executive of the Scotch Whisky Association Karen Betts says the industry are "delighted."

She said: "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.

"I want to pay tribute in particular to the hard work of Liz Truss, International Trade Secretary, and her team. Her commitment to finding a resolution of this issue, alongside Kwasi Kwarteng, Business Secretary, has been very encouraging through what has been a particularly difficult period for our industry.

"Distillers will certainly be raising a dram to her tonight.

"The UK government and the new US administration will now need to work hard on finding a negotiated settlement to this long-running aerospace dispute.

"We hope too that both governments will be able to find a rapid, pragmatic solution to the steel and aluminium dispute which still impacts US whiskey exports to the UK."