President Donald Trump has withdrawn his proposed tariffs on UK and European goods that had been linked to tensions surrounding Greenland, following diplomatic discussions involving NATO allies.
The move, says Alan Stewart, partner at accountancy and advisory firm MHA, has eased immediate concerns for Scottish exporters with exposure to the US market, while also underlining the continued volatility of US trade policy.
The threatened tariffs had been positioned as leverage amid wider geopolitical disagreements involving Denmark and other European nations, with Greenland becoming a focal point due to its strategic importance.
However, after engagement with NATO partners and renewed emphasis on alliance cohesion and collective security, the US administration has stepped back from using trade measures in this context. The withdrawal reflects recognition that escalating tariffs against close allies could undermine broader strategic objectives within NATO.
Alan Stewart, partner at accountancy and advisory firm MHA.
Alan, who is based at MHA's Aberdeen office, said: "For Scottish exporters, the decision removes the risk of an immediate increase in US import duties that would have added significant cost and complexity. Sectors such as whisky, manufacturing and food exports — all heavily reliant on the US market — will welcome the short-term relief, particularly at a time when margins are already under pressure from existing tariffs and wider cost inflation.
"Nevertheless, the episode serves as a reminder of how quickly trade conditions can shift. Tariff threats were introduced and withdrawn within a short timeframe, driven largely by political and diplomatic developments rather than changes in underlying trade fundamentals. This reinforces the reality that US trade policy under the current administration remains highly fluid and unpredictable.
"While the Greenland-linked tariffs have been withdrawn, existing US duties on UK goods remain in place, and legal uncertainty continues around the use of emergency trade powers. Moreover, the administration retains alternative mechanisms to introduce new or more targeted tariffs should political priorities change or negotiations elsewhere falter.
"Even where tariffs are not ultimately imposed, the threat alone can disrupt supply chains, complicate pricing discussions and delay investment decisions.
"Scottish businesses trading with the US should therefore be cautious about assuming a return to stability. Ongoing engagement with US customers, careful contract management, and scenario planning for potential tariff changes remain essential. Companies should also ensure that customs classifications, origin documentation and supply-chain structures are robust enough to withstand sudden policy shifts.
"The withdrawal of the proposed Greenland tariffs is a positive development, but it does not remove the underlying risk. Instead, it underscores the importance for Scottish exporters of operating in an environment where trade policy can change rapidly, often with limited notice and significant commercial impact."
From Aberdeen, Alan supports businesses with an international footprint across a wide range of commercial and tax matters. MHA is one of the UK’s leading accountancy firms and also has an office in Edinburgh.
For more information, visit the MHA website MHA