Scotch whisky chiefs say it's time for Trump tariff cut

The Herald Scotland

25-07-2025

Mr Trump's imminent arrival in Scotland comes amid mounting concern within the Scotch whisky industry over the damage being caused to exports by the 10% baseline import tariff slapped by the President on UK goods entering the US. A 25% tariff imposed on single malt Scotch whisky, which stemmed from a long-running trade dispute between the US and EU over aircraft subsidies, during Mr Trump's first term in office is believed to have hit exports to the US by around £600 million.
Industry sources have signalled the current 10% tariff, which was introduced in April, are already having a significant impact on distillers' ability to export to the US, its biggest market by value. It is hoped Sir Kier and Mr Swinney will use their audience with Mr Trump to reinforce the 'symbiotic relationship' between Scotch and the American bourbon sector, which is understood to be in favour of tariffs being removed from Scotch. Whisky distillers here are expected to import more than $1.2 billion of ex-bourbon casks for maturing Scotch over the course of Mr Trump's current term.
A spokesman for the SWA said: "President Trump's visit to Scotland is a timely opportunity for the UK Government to re-engage in discussions to remove the tariffs on Scotch whisky in the industry's largest global market.
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"The Prime Minister should seize this moment to strike a deal to return the zero-tariff agreement which has underpinned industry jobs, investment and growth in both Scotland and in the US.'
Allan Hogarth, executive director of the Scottish North American Business Council, said a major concern of Scottish exporters was the 'mood music that the tariffs can create', noting that 'American consumers will perceive that exported goods will be dearer than their own domestic goods'.
'That could alter consumer behaviour, which is obviously a worry for Scottish exporters who are looking to retain sales,' he told The Herald.
Mr Hogarth noted that Scottish food and drink are the main products which will be affected by US tariffs, but suggested the impact will vary. One 'niche' exporter of premium Scottish gin, which has a price point of $50 per bottle, he has spoken to remains 'bullish' about its US prospects, on the basis a 10% cost increase will not have a big impact on consumers spending this amount on a product. But Mr Hogarth said larger distillers are 'more likely to be impacted by the tariff changes'.
He added: 'One of the other comments made was that even if tariffs are removed, the price increase [arising from tariffs] will not be decreased… the Scottish company concerned would use that extra money to perhaps be spent on marketing and promotion through the buyer.
'So, if and when tariffs are reduced, which we obviously hope they will be, some companies will then have extra funds to help promote their product in market.'
Representatives across the Scottish business community are calling for the Prime Minister and First Minister to use their meetings with Mr Trump to build on the already-strong economic ties between the US and the UK. US-owned companies currently employ around 115,000 at their operations in Scotland, while Scottish exports to America – the country's biggest overseas market – are worth around £5.5 billion.
Liz Cameron, chief executive of Scottish Chambers of Commerce, said: "A visit from the sitting US President is a major opportunity to strengthen Scotland's economic ties with the world's biggest economy. We are encouraged to see both the Prime Minister and First Minister willing to engage directly; they should continue to build on our deep connections with the USA. This is about investment, exports, and jobs, not politics.
"Scotland's exports, from whisky and salmon to renewables and fintech, are world-class. The US is a key market, and now's the time to reinforce our value. We should be pushing for better trade terms, fewer barriers, and stronger commercial partnerships. This is about delivering real economic impact.
"Scottish businesses are already working to secure these partnerships, and SCC stands ready to help them. Our recent trade mission to New York strengthened transatlantic business links, and we're already building on that momentum with more visits to USA scheduled for later this year, and plans underway for participation in Tartan Week 2026. Our goal is clear: grow Scottish exports, attract US investment, and champion Scotland as a global business hub."
Mr Hogarth said it was 'important to remember' that some Scottish exporters to the US, including software companies, are not impacted by tariffs and may have benefited from the weakening of the US dollar.
'If they are billing in dollars and converting back into sterling, that increases their margin,' he said. 'Ironically, the impact of Trump tariffs will have benefited some Scottish companies and increased their margin.'