‘No sign' Trump tariffs on Scotch whisky will increase, says Ian Murray

Yahoo

5 hours ago

The Scottish Secretary of State has said 'there is no sign at the moment' tariffs imposed on Scotch whisky will increase to 25% as he expressed his 'disappointment' in the current US deal arrangement for the sector.
Ian Murray also told BBC Radio Scotland's Sunday Show that Donald Trump's admiration of Scotland should be 'exploited' for the sake of the 'national interest'.
The US President has so far agreed a 10% tariffs on UK exports and 15% on EU ones.
Across the Scotch whisky sector, there are concerns that this deal - which is believed to be costing the industry £4m a week - will lead to significant harm for businesses.
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The Secretary of State is currently leading a UK Government delegation to Germany this week to 'increase economic ties' with the EU.
Mr Murray said it was important to point out that trade deals with the likes of EU and India, the largest growing economy in the world, will provide a 'great opportunity' for Scotch whisky.
Yet, earlier on the programme, Scotland's public finance minister Ivan McKee warned that 25% tariffs could be imposed next year as a deal previously reached with America on temporary duty reliefs could be lifted.
Between October 2019 and March 2021, the tariff imposed as a result of the Boeing dispute resulted in £600 million in lost Scotch whisky exports.
A deal was eventually reached in 2021 to take the 25% tariff off the industry.
However, Mr McKee said: 'That was done on a temporary basis and that runs out next year so it's really important that it is taken out of the picture permanently because when that was in place, that was a significant hamper to Scotch whisky exports.
'As the UK Government concludes the deal with the US Government, we would expect it to be 10% tariffs on whisky which is clearly something we wish wasn't there.'
Mr McKee said he would hope this was not re-imposed but added: 'There's nothing but unpredictability when it comes to Donald Trump and tariffs so who knows what's happening.'
However, Mr Murray insisted it is unlikely this would happen.
Asked how likely it would be for 25% tariffs to be re-imposed on Scotch whisky, Mr Murray said: 'There is no sign of that at the moment.'
He added: 'It's 10% tariffs on Scottish whisky. Yes, we would rather that was as close to zero as possible but ten percent is as low as anybody else in the world right now."
Mr Murray said the Prime Minister Keir Starmer has been able to 'reset international relationships' to do a deal with the US on tariffs.
He said: 'Many, including the First Minister, wanted us to walk away from the US president but it was really important in the national interest and in the Scottish national interest for us to have that relationship to do that deal.
'10% is the lowest tariff in the world. We did the first trade deal it saved the steel industry, the car industry.
'Yes, 10% tariffs on Scotch whisky is disappointing and we will continue to champion the cause for the really unique position of whisky.
"We don't want it to be subject to historic trade wars as it has been in the past. It is a really thriving industry.'
Speaking about the US president's visit to Scotland, Mr Murray said it was a 'great privilege' to when he landed in the country last week.
He said he was in 'no doubt' of Mr Trump's 'great love of Scotland', adding: 'That is something we should exploit in the national interest.'
During his visit to Scotland, President Trump promised to 'take a look' at tariffs on Scotch whisky during his meeting with Starmer as he said he wanted Scotland "to thrive". Since then, however, no changes have been made to the current arrangement.
Speaking on the radio today, the Secretary of State also said Mr Trump suggested he should join him at the press conference beside Air Force One when he arrived in the country, however, the Secretary of State declined.
Mr Murray said: 'He did tap me on the shoulder and said, 'let's go and do this press conference together' which I declined…because it's not for me to do so.
'I don't think it was for me to speak to the American press pack who is travelling on Air Force One with the President of the United States.'