Whisky producers are bracing for further losses after Donald Trump threatened to impose new US tariffs on European countries opposing his bid to acquire Greenland.
The US president said Britain and other European allies would face an extra 10% levy “on any and all goods” from February 1 unless a deal is reached, adding to pressure on an industry already struggling in its biggest market by value.
The Scotch Whisky Association has recorded more than 1,000 job losses in the past year, with the sector already losing around £20million a month due to existing US tariffs.
One senior industry figure described the latest move as a “tungsten-grade disappointment”.
Scotland’s First Minister John Swinney said: “Tariffs should not be a bargaining chip in place of reasonable dialogue between partners.”
Leonard Russell, managing director of Ian Macleod Distillers, told The Times: “An increase in tariffs will be a serious blow on both sides of the Atlantic,” adding that “up to 15% of our production goes to the US”.
David Graham, director of GlenWyvis Distillery, said: “The threat of these new tariffs will be a terrible blow to the whole industry… Everyone loses out.”
Prime Minister Sir Keir Starmer will address the nation later this morning after telling President Trump that his tariffs on Nato allies opposing an American takeover of Greenland were “wrong”.
The UK and other European countries warned on Sunday that imposing tariffs would “undermine transatlantic relations and risk a dangerous downward spiral”.
William Bain, Head of Trade Policy at the British Chambers of Commerce said: "New tariffs on goods exported to the US will be more bad news for UK exporters, already struggling with the tariffs levied last year.
“We know trade is one way to boost the economy and the success of transatlantic trade depends on reducing, not raising, tariffs.
“The Government must prioritise the implementation of the Economic Prosperity Deal and negotiate calmly to remove the threat of these new tariffs.”