Scotch whisky producers have warned Donald Trump could have a “catastrophic” impact on the industry with production cut back as a result.
The new President has made clear he is prepared to slap huge fees on goods imported into the US if he believes it will boost American businesses.
Scotch whisky is one of the UK’s biggest exports to the USA with sales reaching £978m last year. France, the second biggest market, is worth £474m in comparison.
John Swinney has previously vowed to use Donald Trump’s affinity for Scotland in a bid to avoid the prospect of tariffs being applied on imports to the US.
But whisky producers have now spoken out over their fears for the future. Guy Macpherson-Grant, a partner in the Ballindalloch Distillery, said it was clear tariffs would be counter-productive.
“It is concerning. Economic history tells you that a tariff war doesn’t benefit anyone longer term,” he told the Sunday Times.
During his first stint in charge, Trump imposed retaliatory tariffs on imports of Scotch whisky between October 2019 and March 2021 – costing £600 million in exports, according to the Scotch Whisky Association (SWA). The tariffs were suspended for five years but are due to resume in 2026 – unless Trump intervenes.
“It was catastrophic: we lost 25 per cent of our US business, said Daniel Sherry of Ian Macleod Distillers.
“People are feeling the pinch and the industry has taken a big, big hit,” he added. “To have tariffs on top of that would be a two-punch combination. Some distillers are looking at cutting back on their production already, having grown it every year for two decades. This tariff talk has instilled some panic.”
The whisky industry supports about 66,000 UK jobs, with many in rural areas with few other major employers.
John Beard, former chief executive of the White & Mackay whisky group, said: “This is very, very significant at a time when there are so many global economic headwinds around. No one wants to go down this tariffs rabbit hole again, surely?”
It comes after a major producer of Scotch whisky last week issued a sales warning as fears grow that a global trade war could erupt because of Trump.
Diageo, which owns Johnnie Walker and other iconic Scottish drinks brands, has scrapped a key sales target amid growing uncertainty over US tariffs and volatile consumer demand.
The company, a major employer in Scotland, said it was in talks with the Trump Administration over upcoming tariff policies that could “impact” its sales recovery.
It said the confirmation over the weekend that tariffs will be imposed, although delayed for at least a month, “adds further complexity” to its ability to predict future trading.
Diageo said its tequila and Canadian whisky brands are expected to be particularly affected.
The Scotch Whisky Association said: “The industry looks forward to working in partnership with President Trump and his administration to build trade links which create jobs and investment in the US.”
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