SCOTCH WHISKY MAKERS HAIL FREEZING OF COSTLY U.S. TARIFFS

Scotch single malt whisky makers breathed a sigh of relief Thursday after the United States agreed to suspend tariffs on one of Scotland’s main exports in the wake of the resolution of a long-standing transatlantic trade row over subsidies to aircraft companies Boeing and Airbus, Pan Pylas reported for Associated Press (AP).

President Donald Trump imposed 25% tariffs on select products of the European Union (EU), including Scotch single malt whiskies, in October 2019 as part of the trade dispute. While the UK is no longer an EU member, it belonged to the bloc when the tariffs were introduced.

Earlier this week, the US and the EU reached an agreement to end the aerospace dispute, paving the way for a 5-year suspension of tariffs. Parallel talks were held between the US and the UK over the tariffs.

The tariffs on Scotch single malts were the most high-profile to affect Britain.

The Scotch Whisky Association estimated that they contributed to a 30% fall in total whisky exports to the US, equivalent to around 600 million pounds ($850 million) in the 18 months to March 2021.

“This deal removes the threat of tariffs being re-imposed on Scotch whisky next month and enables distillers to focus on recovering exports to our largest and most valuable export market,” Karen Betts, the association’s chief executive, said.

A thaw in US-EU relations had been widely expected following the election of President Joe Biden. Tariffs linked to the Airbus-Boeing dispute were temporarily halted in a bid to negotiate a solution.

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