Scotch whisky bosses have urged US politicians “to speak up for the industry” over fears brutal tariffs could be reintroduced on Scotland’s national drink.
Representatives from the industry were in Washington DC last week in a frantic lobbying campaign to prevent the sector from being dragged back into a two-decade-long transatlantic dispute over subsidies for aeroplane manufacturers.
When the tax - brought in by Donald Trump - was last in place, Scotland’s distilleries reported a loss of roughly a million pounds a day.
They were suspended in 2021, but only for five years.
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As well as the end of the moratorium looming, the visit to the States comes after Mr Trump raised the prospect of slapping a new levy on just about every import to America if he wins the Presidential election in November.
He told Time magazine he wanted a “ring around the country” and would impose a 10% tariff on all imports and a 60% tax on goods coming from China.
The cash raised will be used to pay for a series of tax cuts.
The Republican - who is marginally ahead of Joe Biden in the polls - brought in similar measures in 2019 when he intensified a decades-long row over European subsidies to aircraft maker Airbus and American subsidies to Boeing.
All single malt Scotch whisky was slapped with a 25% tariff.
Other UK industries including cashmere and construction vehicles were also affected.
In retaliation, the EU put tariffs on US-made goods including Harley Davidson motorcycles, jeans and bourbon whiskey.
According to the Scotch Whisky Association’s analysis, the industry lost £600m over the 18 months the charge was in place. Exports to the US fell by 25% in the last three months of 2019.
The tariffs were paused in March 2021 by President Biden’s administration. That was after Britain suspended its own retaliatory tariffs following Brexit.
Senior figures from the Scotch Whisky Association met with members of Congress to discuss the suspension. They fear the industry could once again be “collateral damage in a trade war not of its making” when the pause ends in June 2016.
They joined forces with the Distilled Spirits Council of the United States.
SWA International Director Ian McKendrick told The Herald on Sunday that Scotland has “many allies” in Congress.
He said: “The members of the Congressional Bourbon Caucus we have met have been steadfast in their support for tariff-free trade, understanding not only the direct impact tariffs have on Scotch Whisky exports but also the knock-on impacts to US wholesalers, retailers and hospitality, as well as the £80m a year trade in ex-bourbon casks.
“In addition, Scotland has many allies on the Hill, including members of the Friends of Scotland Caucus.
“Following the respective elections in the US and UK we have asked them to speak up for the industry, and find a way to remove the Scotch Whisky industry from harm.”
Chris Swonger, President and CEO of the Distilled Spirits Council of the United States, said there needed to be a resolution to the Airbus-Boeing trade dispute.
He said: “Nearly two years ago, distillers in the United States and Scotland jointly toasted the U.S. and the UK governments for reaching important agreements that secured the removal of retaliatory tariffs on Single Malt Scotch Whisky and American Whiskeys in separate trade disputes wholly unrelated to the distilling sector.
“These agreements have been instrumental in resetting the crucial trading relationships between the US and UK, benefitting consumers and producers on both sides of the Atlantic.
“If an agreement is not reached by June 2026, the 25% US tariff on Single Malt Scotch will return, dampening the recovery of the hard-hit hospitality sector as it emerges from the COVID-19 pandemic.
“We call on both nations to prioritise reaching an agreement in the WTO Large Civil Aircraft dispute to permanently remove retaliatory tariffs on Single Malt Scotch Whisky once and for all."
The US market is hugely important to the sector. It was the first billion-pound market and had an export value of £978m in 2023, with 127m bottles exported.
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During the 2020 election, Mr Biden described the tariffs brought in by Mr Trump as a tax on American consumers.
However, earlier this month, he announced a sharp increase in tariffs on a number of Chinese imports, including electric vehicles, solar cells, and advanced batteries.
He also gave his backing to tariffs on more than $300 billion worth of Chinese goods put in place by Mr Trump.
The two men are set to face each other in the first debate of the campaign on June 27.
This could be a pivotal week in the campaign, with Mr Trump’s hush money trial due to conclude.
Closing arguments in the case are scheduled for Tuesday, after which a jury will decide whether to convict the Republican.
He is the first former president in US history to stand trial on criminal charges.
Mr Trump is accused of falsifying business records to cover up an alleged affair with adult film star Stormy Daniels.
The maximum sentence is four years in prison, though in most cases involving prison time, defendants are typically sentenced to a year or less.
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