Retaliatory tariffs on American whiskey and Scotch whisky end

Whisky makers in the UK and US have welcomed the end of retaliatory tariffs on American whiskey and Scotch whisky.

Following the resolution of the tariff dispute by the two countries earlier this year, originated between the EU and the US over the EU subsidies on large aircraft, the UK has ended its rebalancing measures on a wide variety of US products including whiskey, Levi’s jeans and Harley Davidson’s motorcycles on June 1.

“Lifting the tariffs means imports of US products will be cheaper to import, lowering costs for UK consumers and businesses,” International Trade Secretary Anne-Marie Trevelyan said.

“It’s exciting to see how our thriving transatlantic trade relationship is creating brilliant opportunities for UK businesses, supporting jobs and driving economic growth.”

The Distilled Spirits Council of the US and the Scotch Whisky Association, in a joint statement, thanked Trevelyan and her predecessor Liz Truss and their US counterpart Katherine Tai “for their determination” to end tariffs in the sector.

“Now that the crippling tariffs have ended, we stand ready to help reset and strengthen the crucial trans-Atlantic trade relationship. This enduring partnership is critical to accelerating the recovery from the damaging impact of retaliatory tariffs, the Covid pandemic, and the increasing pressures on global supply chains,” they said.

American whiskey and Scotch whisky are deeply interconnected through bi-lateral trade, investment flows, and shared production practices. Important trade agreements reached between the US and EU in the mid-1990s – which the UK has subsequently carried over – to eliminate tariffs on most spirits, including Scotch Whisky, Bourbon, and Tennessee Whiskey, form the foundation of mutually beneficial trans-Atlantic trade.

Between 1997-2017, when there were no tariffs on distilled spirits between the US and UK, bilateral trade in whiskies increased 212 per cent (from £362 million to £1.13 billion). The retaliatory tariffs imposed on Single Malt Scotch Whisky and the American Whiskeys resulted in a 35 per cent decrease in bilateral trade in whisk(e)y between 2018-2021 (from £1.21 billion to £784 million).

“The benefits of free trade are clear, and we champion it. We look forward to focusing on bringing our whiskies to consumers around the world and competing in the marketplace on a level playing field,” the industry bodies added.

Three whiskey lovers are also toasting the lifting of trans-Atlantic tariffs on their favourite tipple by launching the first ever bourbon to be finished in England.

Martha Dalton, David Wild and Fran O’Leary, have set up Never Say Die to ship supplies of the iconic liquor distilled in Kentucky over to the UK to be matured and then sold.

This will be the first time that bourbon, distilled and matured in Kentucky, will be ocean aged on a six-week trip across the Atlantic, and then matured in barrels in Derbyshire to give it a unique, British finish.

David Wild, Co-Founder of Never Say Die, said: “We’re very grateful to Anne-Marie Trevelyan for her work to remove the tariffs on American whiskey, which were damaging to both the UK and the US industries. DIT made it possible for us to ship our bourbon over to the UK, with the first barrels set to be shipped today (June 1), and launch our brand, investing and creating jobs in the UK.”

The UK’s whisky industry is thriving and the exports rose nearly 20 per cent last year to £4.6 billion – of which over £820 million-worth went to the US, making it the biggest food and drink export both Stateside and internationally.

US spirits company Brown-Forman, which owns three of Scotland’s top distilleries GlenDronach, Benriach and Glenglassaugh also hailed the resolution of the tariffs dispute. The firm, which employs hundreds of people in the UK, revealed that it is planning a multi-million pound investment in its Scottish facilities.