SWA Travels to the US as 25% Whisky Tariff Looms
2026 could become one of the worst years for Scotch whisky and UK distilleries. The industry could once again become the subject of a trade war between the US and the UK. An approved suspension of an approved tariff hike expires that year.
With 25 months remaining to the reinstatement of the 25% tariff on Single Malt Scotch Whisky, distilleries are taking action. The Scotch Whisky Association (SWA) will visit the US and, join the Distilled Spirits Council of the United States DISCUS (DISCUS) in a meeting with Congress.
During the week of May 15-17 the SWA will meet with members of Congress and partners in the United States. The group will comprise over 25 US-based businesses from the whisky industry, DISCUS, the SWA, and the US Congress.
SWA Meets With the US Congress as 25% Whisky Tariff Looms
Between October 2019 and March 2021, a 25% tariff was imposed on Single Malt Scotch Whisky. This caused the industry to lose over £600 million- about £100 per day. The tariff was related to a dispute between Airbus and Boeing and was suspended until June 2026.
Without concerted action by the US and UK administrations to resolve the underlying dispute, the tariff will resume its course. The Scotch Whisky industry fears it will reap collateral damage in a trade war not of its making.
SWA international director Ian McKendrick said. “The clock is ticking to remove Scotch Whisky from harm over this longstanding aerospace dispute. There are 25 months left to eliminate the risk of the 25% tariff being reintroduced. This issue must be at the top of the list of the transatlantic trade agenda once this year’s elections have taken place.
“The tariffs between 2019 and 2021 were damaging to the Scotch Whisky industry. And to our supply chain partners which extend into the US, especially the trade in casks. Over £1m a day in lost exports was a high price for the Scotch Whisky industry to pay for unrelated dispute.
“A re-run of these damaging tariffs must be avoided. We look forward to meeting members of Congress to discuss how we can safeguard Scotch Whisky. In the industry’s largest global market, and call time on Scotch Whisky tariffs for good.”
DISCUS to Help Scotch Whisky Industry
Chris Swonger, CEO of DISCUS, said: “Nearly two years ago, distillers in the United States and Scotland jointly toasted the US and the UK governments for reaching important agreements that secured the removal of retaliatory tariffs on Single Malt Scotch Whisky and American Whiskeys in separate trade disputes wholly unrelated to the distilling sector.
“These agreements have been instrumental in resetting the crucial trading relationships between the US and UK, benefitting consumers and producers on both sides of the Atlantic. If an agreement is not reached by June 2026, the 25% US tariff on Single Malt Scotch will return, dampening the recovery of the hard-hit hospitality sector as it emerges from the COVID-19 pandemic.
“We call on both nations to prioritize reaching an agreement in the WTO Large Civil Aircraft dispute to permanently remove retaliatory tariffs on Single Malt Scotch Whisky once and for all.”