By stewartb

I’m pleased that independent whisky distillers in Scotland will benefit from the removal of trade tariffs on their exports to the USA.  (As someone who greatly enjoys a single malt, I’ve long since shunned for the most part the brands of the big corporates in favour of Scotland’s burgeoning independent sector.) The role of FM Swinney in achieving this change in US policy seems to be ‘triggering’ Unionist politicians. Mr Swinney’s release of the text of the message he received from the US President is not going to help Unionist blood pressure!

Here is some additional, background information that may be of interest. It seems to clarify further which governments in the UK have been of most assistance recently to the Scotch whisky industry.

Supported by the Scottish Government?

From the Scotch Whisky Association’s (SWA) website (9 September, 2025) ‘First Minister joins SWA in Washington DC to press for zero tariff trade’ (see https://www.scotch-whisky.org.uk/newsroom/first-minister-joins-swa-in-washington-dc-to-press-for-zero-tariff-trade/ )

‘The First Minister has flown to Washington D.C. to press for a better deal on Scotch Whisky tariffs that are currently costing £4 million per week. 

‘With just over a week to go before President Trump’s State Visit to the UK, the First Minister has joined a delegation from the Scotch Whisky Association. They will jointly engage with representatives of the Distilled Spirits Council of the United States (DISCUS) to advocate for a better deal including, ideally, zero-for-zero tariffs on spirits as part of the ongoing UK-USA trade negotiations. ‘

SWA Chief Executive is quoted:  “The First Minister’s visit to the United States to press the case for removal of Scotch Whisky tariffs is a positive and timely intervention ahead of the President’s forthcoming State Visit to the UK.” (my emphasis)

“Scotch Whisky and US Whiskey share a close and longstanding trade relationship, and industries on both sides welcome the First Minister’s leadership on this issue and his efforts to strike a deal which will benefit communities in Scotland and across the US.”  The FM’s ‘leadership’ no less:how will Unionist politicians and their media allies cope with being reminded of this praise?

The Managing Director of Isle of Harris Distillers is quoted: “I’m grateful that the First Minister is behind businesses like ours, publicly making the argument for tariff removal on Scotch Whisky at the earliest opportunity. Removal of tariffs would be a huge boost, helping to support jobs and investment across rural communities like ours.”

Supported by Westminster governments?

Let’s look back at some more of the history of this US tariff issue.  From the SWA website (11 February 2020): ‘Scotch Whisky exports surge amidst backdrop of tariff uncertainty’.

The SWA at this time stated: ‘While the US remained the Scotch Whisky industry’s most valuable market, increasing in value by 2.8% to £1.07bn, export volume fell by 7% to 127m 70cl bottles. There was a marked difference in the final quarter of the year. In Q4 2019, exports to the US fell by 25%.’

And in this context, the SWA notes: ‘… the imposition of a 25% tariff on exports of Single Malt Scotch Whisky and Scotch Whisky Liqueurs to the United States is very concerning, and the 25% fall in exports to the US in the fourth quarter of 2019, immediately following the implementation of tariffs, is stark.’

The SWA’s CEO is quoted: “We are continuing to press the UK government to put in place a package of support for distillers to help mitigate the impact of tariffs, including a cut in excise duty in next month’s budget which would allow distillers to re-invest in the UK market while sales are under pressure in the US.” Keep this industry ask of Westminster regarding excise duty in mind.

Forward to 15 March 2023: ‘Scotch Whisky Hit with ‘Historic Blow’ After Tax Increase’.

’The Scotch Whisky Association (SWA) has slammed the decision by the Chancellor to raise duty on Scotch Whisky by 10.1%, in one of the largest tax hikes in recent decades, and further increase the competitive disadvantage faced by spirits – breaking the UK government’s pledge to “review alcohol duty to ensure our tax system is supporting Scottish whisky.’ This was a Tory Chancellor in Westminster.

Then from the SWA website (26 November 2025): ‘Chancellor Rachel Reeves announced an RPI inflation increase to alcohol duty.’

The SWAstates: ‘The Scotch Whisky Association (SWA) has said the Chancellor’s decision to further increase duty on Scotch Whisky will put “additional pressure on a sector suffering job losses, stalled investment and business closures.” Of course, this was  an action of a Labour Chancellor in Westminster!’

‘The SWA had called on the new Chancellor to freeze duty to support jobs, investment and growth. Revenue from spirits revenue has fallen since the previous 3.6% increase to spirits duty last year, reducing revenue by 7% compared to 2024/25, or £150m.

Again the Chief Executive of the SWA is quoted: “The Scotch Whisky industry is disappointed that the domestic tax burden has once again increased in the Autumn Budget, putting huge additional pressure on a sector suffering job losses, stalled investment and business closures.

“Put simply, the government cannot expect the Scotch Whisky sector to just keep delivering growth, both at home and on the world stage, if the conditions which support growth are not nurtured.

“The previous 3.65% increase to spirits duty has reduced spirits revenue by 7% – a loss to the Treasury of  £150m. Hiking duty today, for the third time in two years, not only limits our sector’s ability to contribute to much needed economic growth and productivity, but will once again fail to deliver for the public purse and needlessly cost jobs.

“Increasing global and domestic pressures led our industry to ask for duty in our home market to remain unchanged. Not a tax cut, not a handout, simply breathing room for a critical Scottish industry. Government has chosen to ignore those warnings, to the detriment of distillers, of bars and restaurants, our farmers and suppliers, and ultimately of growth.” Yes, ignored by successive Westminster governments!

And more from SWA’s website (21 April, 2026) ‘Spirits sector responds to £94m fall in UK spirits duty revenue’. It refers to ‘… the devastating impact of the 17% increase to spirits duty over the last three years.’

End note

The SWA’s website has a short piece on the latest news regarding US tariffs (30 April): ‘Whisky tariffs to United States removed by President Trump’.  Notwithstanding its former, explicit acknowledgment of FM Swinney’s ‘leadership’ and his ‘positive and timely intervention’ as far back as 9 September, 2025 there is no mention of the efforts by the Scottish Government in the latest statement from the SWA. It was the monarch that did it?

But then this IS the Scotch Whisky Association! You may recall that the SWA argued against Scotland’s independence because it threatened (even temporarily) the ending of EU membership! Remember this for example from May 13, 2014: ‘Scotch Whisky Association Fears Independence Impact On Exports’ (https://dev.whiskycast.com/scotch-whisky-association-fears-independence-impact-on-exports/  )

‘In the SWA’s report, (David, now Baron) Frost called EU membership fundamental to Scotch whisky’s success: “We are able to export tariff-free across the single market, use EU to eliminate market access problems, and benefit from the EU’s clout in trade negotiations. … even a temporary interruption of EU involving exclusion from the single market or the customs union, if this were a consequence of independence, would be damaging and difficult to manage.”

That worked out well for SWA members! We know that Baron Frost did a sharp about turn on his support for EU membership shortly afterwards. One wonders if the SWA and its members have changed their opposition to Scotland’s independence. Like the Scottish Fisherman’s Federation, another trade body whose members have been let down by successive UK governments, I still have little confidence in their strategic good sense.