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The Scotch whisky industry is bracing itself for a harsh winter with global market conditions and tariffs leading to a downturn in production.

Sales to it's biggest export market, the US, have been affected by Donald Trump's tariffs which added 10% to importers' costs, while America tariffs on single malts could add another 25% charge in spring unless a deal can be done.

Falling sales is not a trend unique to the US market though, with other markets showing squeezed growth, consumers tightening their belts, rising taxes and costs including packaging regulation, the BBC reports.

Scotch whisky exports to China dropped by almost a third (31%) last year, with data from the first half of this year showing a 1% increase in the value of Scotch exports to £2.5billion, while volumes dropped nearly 4%.

The impact of US tariffs could take some time to reveal itself as distillers stocked up ahead of the frontier tax coming into force.

More positively, the recent trade deal with India - the world's biggest importer of Scotch whisky by volume - has seen tariffs significantly reduced.

The current tariff of 150% of the value of each bottle is to gradually be lowered to 40%, although a slump in the short term is not likely to avoided.

FTSE100

The UK's flagship share index, the FTSE 100, was down 59 points at 9,689 shortly after opening this morning.

Brent crude oil futures were up 0.25% at $61.37 a barrel.

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