As part of an ongoing trade war between the U.S. and Europe, the Trump administration today announced plans for a 25% tariff on all manners of European imports.
These includes Scotch whisky, along with European liqueurs and cordials, as well as Irish whiskey.
The new tariffs are set to go into effect on Oct. 18.
For reason behind this negative economic development, look to the sky. Earlier this week, the Trump administration sought and received approval from the World Trade Organization to impose these tariffs as retaliation against the European Union giving aid to Airbus in helping fight off its U.S. competitor, Boeing.
“Despite the fact that this dispute is about aircraft subsidies, our sector has been hit hard, with single malt Scotch whisky representing over half of the total value of UK products on the US Government tariff list (amounting to over $460 million),” says Karen Betts, chief executive of the Scotch Whisky Association.
“The tariff will undoubtedly damage the Scotch whisky sector,” Betts adds. “The U.S. is our largest and most valuable single market, and over £1 billion of Scotch whisky was exported there last year. The tariff will put our competitiveness and Scotch Whisky’s market share at risk.”
These come a year after the EU imposed a similar 25% tariff on U.S. products, which has greatly affected American whiskey sales overseas.