Fears for Scottish whisky jobs with Trump election

6 November 2024, 17:03

Fears that tariffs could be slapped on Scotch whisky by a new Trump administration have been raised by Scotland's First Minister John Swinney who told LBC that such a move could cost jobs.

He said there could be "real difficulties" ahead and would be pressing both the UK and US governments to ensure import tariffs were not applied to one of Scotland's most valuable exports.

Scotch whisky is worth £7.1bn to the UK economy, and the industry employs 11,000 people, but when President Trump was last in office he imposed a 25 per cent tariff on single malt and liqueurs. which ran from October 2019 to March 21.

At the time the Scotch Whisky Association said exporters lost £600m and described the tariffs as "hugely damaging", given the US is the single largest market for Scotch malt whisky.

Today, visiting the Scotch Whisky Experience to discuss the real living wage, Mr Swinney said that he was concerned such a move could be made by President Trump once again. The President-Elect has already pledged to impose tariffs of 60% on Chinese imports and at least 10% on imports from everywhere else,

Speaking to LBC he said: "There's obviously the risk that President Trump could apply tariffs on Scotch whisky, it's been done in the past we have a period of respite just now, I'm concerned it might be a possibility so we will make the strongest representations to both the UK and US govts to avoid that at all possible costs.

"It is a real threat which could have a damaging effect on employment and opportunities in Scotland and I want to avoid that at all possible costs."

The First Minister also defended his endorsement of Kamala Harris during the election campaign, saying it was important that politicians "set out their views".

But he congratulated Donald Trump on his victory, saying he would welcome him to Scotland if he decided to come.

Asked if he was concerned that Mr Trump might support Nigel Farage's Reform party at the Holyrood elections in 2026 he said: "What's important is that politicians set out their views when they're asked and I did so, and it's also important they respect democracy and I've done that today."

On US foreign policy, Mr Swinney told LBC that Ukrainian refugees now living in Scotland were "valued members of the community" and it was "important that Europe and the US stand in absolute solidatiry with Ukraine.

"I am wholly committed to that, we've got to repel the Russion aggression, if we don't we're opening oruselves up to enormous threats to territorial inrtegirty and stability and peace in westerm Europe."

On events in the Middle East he reiterated his call for an immediate ceasefire, the release of Israeli hostages and for "a long term solution which will only come about with the recognition of a sovereign Palestinian state, a two state solution".

He added: "We've got to wait and see what steps President Trump takes but the suffering in Gaza and the Lebanon has to be brought to an end, we have to have peace and stability and the US can play a constructive role in bringing that about."

Mr Swinney's endorsement of vice president Harris last week drew ire from Trump International, which owns two golf courses in Scotland, and called the FM's decision "appalling".

The Scotch Whisky Association, the trade organisation for the industry, said tariff-free trade would benefit producers of alcoholic spirits on both countries.

A spokesman said: "As Prime Minister Keir Starmer has said, the UK and US stand shoulder to shoulder and are partners in enterprise.

"To deepen this partnership, the US and UK administrations should agree to maintain the zero-tariff trade of whiskies across the Atlantic."

Meanwhile the Scottish Greens said Scotland must not seek any "special relationship" with the Trump administration. Co-leader Patrick Harvie said: "There is no way that Scotland can have a normal relationship with a President who has shown a total contempt for democracy and for truth.

"Trump and the extremists around him have made clear that they will try to undermine human rights at every turn while scapegoating and punishing marginalised groups every step of the way."