Whisky industry takes aim at Lizz Truss as Washington talks fail to remove tariff

The whisky industry has been hit hard by the tariffs
Mark Shapland13 August 2020

The Scotch Whisky industry hit out today after a 25% tariff on single malt exports to the US was retained.

The move was introduced by the US last year as part of a long-running feud over state aid for the plane maker Airbus - which the US claims received illegal EU subsidies.

Since the tariffs came in exports of single malt to the US have plummeted by 30% and the industry suffered losses that total £300 million.

Karen Betts, chief executive of the Scotch Whisky Association, accused the UK Government of being “inexplicably slow” in tackling the issue and called for negotiations to be accelerated.

International Trade Secretary Liz Truss visited the US last week to talk to US Trade Representative Robert Lighthizer.

Lighthizer said last night that shortbread would no longer face tariffs.

Truss has pledged to step up efforts to persuade the US to lift punitive tariffs imposed on UK goods such as single malt whisky.

“I am pleased that the US has not applied these additional tariffs, and welcome the decision to lift tariffs on shortbread,” she said in a statement.

“However, the announcement does not address tariffs that already exist on goods like single malt Scotch whisky.

“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.”

The UK left the European Union in January but is now in an 11-month period, known as the transition, that keeps the UK bound to the EU's rules and treaties.

The UK is currently in the process of drawing up a trade deal with the US.

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