Published: 17:05, August 13, 2020 | Updated: 20:05, June 5, 2023
Britain to step up challenge over US whisky tariff
By Reuters

A waiter pours a bourbon whisky into a glass in a Bar and Block restaurant, operated by Whitbread Plc, in London, UK, on Jan 17, 2018. (PHOTO / BLOOMBERG)

LONDON - Britain said it would step up demands for the United States to drop tariffs on goods such as single malt Scotch whisky after the industry warned a decision by Washington to retain the levy was putting its future at risk.

The US government on Wednesday said it would maintain 15 percent tariffs on Airbus aircraft and 25 percent tariffs on other European goods as part of a long-running trade dispute, although it held off adding some extra tariffs as it had threatened.

British Trade Secretary Liz Truss welcomed the absence of new tariffs, but said she had raised the whisky issue with her US counterpart Robert Lighthizer during talks last week and she would now go further.

“These tariffs damage industry and livelihoods on both sides of the Atlantic and are in nobody’s interests,” she said in a statement on Thursday. “I am therefore stepping up talks with the US to remove them as soon as possible.”

These tariffs damage industry and livelihoods on both sides of the Atlantic and are in nobody’s interests. I am therefore stepping up talks with the US to remove them as soon as possible.

Liz Truss, British Trade Secretary

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After leaving the European Union earlier this year Britain is trying to tie up swift trade deals with major partners like the United States to capitalise on its new freedom to strike bilateral deals rather than EU-wide ones.

But Britain has still been affected by a decision from Washington to impose tariffs on an array of EU food, wine and spirits in retaliation for EU subsidies on large aircraft.

The Scotch Whisky Association said exports to the US had fallen 30 percent since the tariff came into force and jobs and the supply chain were at risk.

READ MORE: UK mulls cutting tariffs on US agricultural imports

“It has taken the UK government a full six months after the UK left the EU to start to tackle tariffs directly with the US government, which seems to us inexplicably slow,” Chief Executive Karen Betts said.

She urged London to do more to support the industry.

“Scotch Whisky is a crucial part of Scotland’s economy, employing over 11,000 people and many more than that through our supply chain, in some of the UK’s most productive jobs,” she said.