Achi news desk-
When the tax – brought in by Donald Trump – was last in place, Scottish distilleries reported a loss of around 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 on the horizon, the visit to the United States comes after Mr Trump raised the possibility of hitting a new levy on almost all imports to America if he won the Presidential election in November.
He told Time magazine that he wanted to “circle the country” and would impose a 10% tariff on all imports and a 60% tax on goods coming from China.
The money raised will be used to pay for a series of tax cuts.
The Republican – who is slightly ahead of Joe Biden in the polls – brought similar measures in 2019 when a decades-long row over European subsidies to plane maker Airbus and American subsidies to Boeing intensified.
All single malt Scotch whiskey was hit with a 25% tariff.
Other industries in the UK were also affected including cashmere and construction vehicles.
In retaliation, the EU imposed tariffs on US-made goods including Harley Davidson motorcycles, jeans and bourbon whiskey.
According to the Scotch Whiskey 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 suspended in March 2021 by President Biden’s administration. That was after Britain suspended its own retaliatory tariffs following Brexit.
Senior officers of the Scotch Whiskey Association met with members of Congress to discuss the suspension. They fear the industry could once again be “collateral damage in a trade war that isn’t made” when the pause ends in June 2016.
Both joined the Distilled Spirits Council of the United States.
SWA International Director Ian McKendrick told The Herald on Sunday that Scotland had “many allies” in Congress.
He said: “The members of the Congressional Bourbon Caucus we have met with have been steadfast in their support for tariff-free trade, understanding not only the direct impact that tariffs have on Scotch Whiskey exports but also the resulting effects on US wholesalers and retailers. and hospitality, as well as the £80m a year trade in bourbon barrels.
“In addition, Scotland has many allies on the Hill, including members of the Friends of Scotland Caucus.
“Following the respective elections in the United States and the UK we have asked them to speak up for the industry, and find a way to eliminate damage to the Scotch Whiskey industry.”
Chris Swonger, President and CEO of the Distilled Spirits Council of the United States, said the Airbus-Boeing trade dispute needs resolution.
He said: “Almost two years ago, distillers in the US and Scotland jointly toasted the US and UK governments for reaching landmark agreements which secured the removal of retaliatory tariffs on Single Malt Scotch Whiskey and American Whiskey in separate unrelated trade disputes. the distilling sector.
“These agreements have been instrumental in resetting the vital trading relationships between the US and the UK, benefiting consumers and producers on both sides of the Atlantic.
“If no deal is reached by June 2026, the 25% US tariff on Single Malt Scotch will return, dampening the recovery of the impressive hospitality sector as it emerges from the COVID-19 pandemic.
“We call on both countries to prioritize reaching an agreement in the WTO Large Civil Aircraft dispute to permanently remove retaliatory tariffs on Single Malt Scotch Whiskey once and for all.”
The US market is extremely 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 introduced 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 support to tariffs on more than $300 billion worth of Chinese goods put in place by Mr Trump.
The two men are expected to face each other in the first debate of the campaign on June 27.
This could be a crucial week in the campaign, with Mr Trump’s hush money trial due to end.
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 the history of the United States to stand trial on criminal charges.
Mr Trump has been accused of falsifying business records to hide an alleged affair with adult film star Stormy Daniels.
The maximum sentence is four years in prison, although in most cases involving prison time, defendants are usually sentenced to one year or less.
