The Scottish Prime Minister
John Swinney is in the
United States this week to address a sensitive issue: the 10% import tariff the US imposes on Scottish whisky. This puts not only Scotch at risk, but bourbon as well.
FAQ
- What are the American import tariffs on Scottish whisky?
A rate of 10 percent currently applies to whisky entering the United States. - How is Scotland trying to ease the import tariffs?
By maintaining dialogue with SWA, American ministers, and the Distilled Spirits Council. - What is the impact of the import tariffs on the bourbon industry?
If tariffs remain this high, damage will inevitably occur due to fewer barrels being shipped.
Scotland and US discuss whisky
John Swinney, the Prime Minister of
Scotland, has flown to the United States to advocate for tariff reductions on Scottish whisky and other British products. The United States currently charges a 10 percent import tariff on British imports, a measure that needs to be addressed according to the Scotch Whisky Association (SWA).
It is now up to Swinney to act. He is currently staying in the US at the British Ambassador's residence and has a packed schedule of meetings with those involved in the tariffs. His continuous dialogue with the Distilled Spirits Council hint at tariff relaxation.
Not the first attempt to relax whisky tariffs
This isn't Swinney's first mission to the States. He was in New York as early as April to raise the discussion and now he's back for a second serious lobby.
According to Angus Robertson, the Scottish Minister for Foreign Affairs, there is enthusiasm in the United States for these talks. This hints at a fair chance that Scotch will soon be an exception or that tariffs will soften.
'Making tariff decisions that would impact negatively on bourbon will impact negatively on Scotch and it doesn't need to be that way.'
- Angus RobertsonTariffs on Scottish whisky also affect bourbon-makers
The tariffs may be relaxed through Swinney's efforts. According to Graime Littlejohn, a director at the SWA, these tariffs also hit America. Scottish whiskey-makers are suffering from the tariffs, but so are bourbon-makers. Especially considering that $1.2 billion worth of bourbon barrels were slated for shipment. If this drops to zero, the loss would be huge.
'We're seeing less Scotch whisky going into the market and we're seeing damage done to the industry.'
- Graime LittlejohnWhat the outcome from Swinney's discussions will be remains to be seen. We're sure to find out in the very near future.