JOE BIDEN’s administration has agreed to drop the crippling tariffs on whisky for four months.

In a lifeline move, the 25 per cent tariffs on Scotch whisky exports have been reduced to zero, beginning today. 

The drinks industry has been campaigning for the UK Government to ‘redouble its efforts’ to end the fees, which have seen a 35% fall in exports of whisky to the US, valued at more than half a billion pounds.

The US has agreed to temporarily suspend all retaliatory tariffs on direct exports from the UK to the US, in the hope of ending a 16-year-long dispute. It will come into effect on Monday, but will be backdated to today. 

Also included in the tariff freeze is cashmere, stilton and pork.

Boris Johnson said: "From Scotch Whisky distillers to Stilton-makers, businesses across the UK will benefit from the US decision today to suspend tariffs in this dispute. 

"It shows what the UK can do as an independent trading nation, striking deals that back our businesses and support free and fair trade.

“I now look forward to strengthening the UK-US relationship, as we drive economic growth and build back better together.”

Karen Betts, chief executive of the Scotch Whisky Association, said the industry was “breathing a sigh of relief”.

She said: “This is fabulous news, and our industry is delighted.

"The tariff on Single Malt Scotch Whisky exports to the US has been doing real damage to Scotch Whisky in the sixteen months it has been in place, with exports to the US falling by 35%, costing companies over half a billion pounds.
“So today, everyone in our industry – from small companies to large – is breathing a sigh of relief. 

"Suspending these tariffs – stemming from a transatlantic trade dispute that had nothing to do with us – and a return to tariff-free trade with the US means livelihoods and communities across Scotland will be protected.

"It means that companies can now really focus on recovery – on building back the American market as well as on building back global exports hit by the coronavirus pandemic. 
“I want to pay tribute in particular to the hard work of Liz Truss, International Trade Secretary, and her team. 

"Her commitment to finding a resolution of this issue, alongside Kwasi Kwarteng, Business Secretary, has been very encouraging through what has been a particularly difficult period for our industry.

"Distillers will certainly be raising a dram to her tonight."

It comes after months of negotiation between the UK Government’s Department for International Trade (DfT) and Donald Trump’s administration to remove the levy, which has been in place since October 2019.

The tariffs arose a result of a dispute between the US and EU over illegal subsidies paid to their aircraft manufacturers, Boeing and Airbus, respectively.

The World Trade Organisation (WTO) found that the EU and the US had both given the firms subsidies that they shouldn't have, and as a result, the US was allowed to impose tariffs on EU goods worth up to £7.5bn.

The trade body also gave the EU permission to impose $4bn worth of levies on US products including a 25% import fee on rum, brandy, vodka and vermouth.

In December, Liz Truss, the Minister for International Trade announced the UK was dropping its levies on US bourbon in a move hoped to break the stalemate on negotiations, however President Trump refused to budge on the whisky fees, and he ended his presidency with them still in place.

Today they have been lifted for four months, alongside tariffs on cashmere.

Ms Truss: "I am delighted to say that our American allies – under their new President and his hard-working staff at the US Trade Representative - have embraced our move to seek a fair settlement.  

This is Global Britain in action: securing new opportunities as a newly nimble nation.  The benefits will be felt across our nation, especially in Scotland, where Scotch whisky distillers will be able to sell at lower prices in the United States, their most valuable market.  

The easier it is for Americans to buy a bottle of Macallan, Talisker or Glenfiddich, the more money those producers will have to invest in their businesses, their staff and futures.

“Today’s agreement shows that both the UK and the US are determined to work together to build back better and take our trading relationship to new heights.”