SCOTCH whisky exports are facing a £100 million loss this year if the US continues to impose its tariffs on the product, the industry has warned, as it joined forces with its American counterpart to call for an end to the punitive import taxes.

It also called on Sajid Javid, the Chancellor, to cut excise duty in the March Budget to mitigate the losses by helping to strengthen whisky-makers’ presence in the UK while the pressure from America continued.

In 2018, Brussels imposed a 25 per cent tariff on imports of US whiskey into the EU in response to American tariffs on European steel and aluminium. A year later, the US retaliated, imposing a 25 per cent tariff on imports of single malt Scotch whisky in the long-running dispute over EU and American subsidies to Airbus and Boeing.

Speaking at a Scotland Office Scotch whisky reception this evening, Karen Betts, Chief Executive of the Scotch Whisky Association, said: “Our message is clear: the UK and US Governments must return quickly to tariff-free trade.

“The current disputes about steel and aluminium and aircraft manufacture have nothing to do with us but the tariffs stemming from them are causing needless damage to our industry on both sides of the Atlantic and to the livelihoods we support.

“Constructive negotiations must solve trade disputes; tariffs on whiskies will not,” she declared.

“Exports each way are markedly down and if these falls are maintained over the year around £100m is likely to be lost in Scotch whisky exports,” explained Ms Betts.

She said many smaller Scotch whisky companies were asking themselves how they could continue exporting to the US, whether they could build up alternative markets, and, if not, how their businesses would cope.

“Until a resolution is found, it is critically important that the UK and Scottish Governments act to mitigate the impact of tariffs on Scotch whisky producers, particularly small and medium-sized enterprises, which are being disproportionately hit.

“A cut to excise duty in the March Budget would help businesses strengthen their presence in the UK while exports to the US are under such pressure,” insisted Ms Betts.

Alister Jack, the Scottish Secretary, hosting this evening’s reception in Dover House, said: “These tariffs are not in the interests of the UK, EU or US. The UK Government has raised the issue at the highest levels of the US administration, including with the President, and we are working hard to support a negotiated settlement.”

He added: “Scotch whisky is a global success story and for the good of the communities and businesses that rely on this iconic industry, we will continue to do everything we can to protect it.”

Chris Swonger, President of the Distilled Spirits Council of the United States, said: “Our industries have enjoyed great growth thanks to the zero-for-zero tariff agreement. Scotch whisky exports to the US have grown 270 per cent, and American whiskey exports to the UK have grown 410 per cent since zero-tariff trade was introduced 25 years ago.”

He added: “We need to get back to zero-tariff trade which benefited distillers on both sides of the Atlantic so our industries can go back to doing what we do best; distilling amazing whiskeys and sharing them with the world.”