The tariffs, which also impacted areas like cashmere and machinery have now been lifted for the next four months, with a statement announcing: “The United Kingdom and the United States are undertaking a four-month tariff suspension to ease the burden on industry and take a bold, joint step towards resolving the longest-running disputes at the World Trade Organization.”
The reaction from the industry has been one of huge relief, with Karen Betts from the SWA saying: “Everyone in our industry – from small companies to large – is breathing a sigh of relief. Suspending these tariffs – stemming from a transatlantic trade dispute that had nothing to do with us – and a return to tariff-free trade with the US means livelihoods and communities across Scotland will be protected.
“It means that companies can now really focus on recovery – on building back the American market as well as on building back global exports hit by the coronavirus pandemic.”
The four-month suspension has been designed to allow both the US and UK to come to new agreements on trade and resolve the bitter dispute over aerospace, so it is possible that no agreement will be reached and the tariff will return in four months.
However, it is still excellent news for the industry and for investors too. The last ten years have seen continued growth in the value of Scotch whisky and this tariff has been the first major speed bump in that growth.
So, with four months of unrestricted trade hopefully followed by a permanent lifting of the tariff, alongside the continued easing of Covid-19 restrictions, there is every reason to believe that Scotch will keep on rising in value, earning great returns for investors.