A high-stakes diplomatic effort is underway to protect Scotland’s iconic Scotch whisky industry from crippling tariffs imposed by the United States. First Minister John Swinney recently held critical talks with US Ambassador to the UK, Warren A. Stephens, directly addressing the threat to a vital national export.
The US represents the single largest market for Scotch whisky, and the newly implemented 10% tariffs loom large over the livelihoods of 14,000 Scottish workers. The industry contributes a staggering £7.1 billion to the UK economy, making its protection a paramount concern.
This isn’t the first time Scotch has been caught in the crosshairs of US trade policy. A previous 25% levy on single malt whiskies during the Trump administration, lasting 18 months, resulted in an estimated £600 million in lost sales. While that levy was eventually suspended under the Biden administration, the current, broader tariffs pose a renewed and potentially more damaging challenge.
Swinney emphasized the mutually detrimental effects of these tariffs, not only for Scotch whisky but also for the American bourbon industry. He argued that a reduction or removal would benefit both nations, fostering a more equitable trade relationship.
The discussions extended beyond whisky, encompassing Scotland’s commitment to a just energy transition and the strength of its financial services sector. However, the shadow of the tariffs remained central to the conversation.
Swinney also voiced concerns regarding the UK Government’s energy policies, specifically the energy profits levy, which he believes is stifling investment and hindering sustainable job creation in Scotland’s northeast. He urged a reevaluation of the policy to foster a more stable energy landscape.
The meeting at Bute House was followed by a whisky-focused reception hosted by Ambassador Stephens at Johnnie Walker Edinburgh, underscoring the cultural and economic significance of the drink. The two leaders then shared a sporting event, attending Scotland’s decisive rugby victory over the USA at Murrayfield.
The First Minister made it clear that while the primary responsibility for trade negotiations rests with the UK team, he will continue to champion the interests of the Scotch whisky industry, safeguarding this cornerstone of the Scottish economy.
