Since they were introduced by Trump, tariffs on imports from the UK have been a real blight on the whole trade, particularly the whisky trade.
With the US representing a large share of the Scotch whisky market, this extra burden on importers has complicated an already complex period for trade, with inevitable repercussions for end customers.
The first steps towards a resolution have finally been taken, with an initial suspension of tariffs for four months, during which time a resolution to the trade conflicts between the two countries will be sought.
Karen Betts, Chief Executive of the Scotch Whisky Association, said: “Today, 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.”
Does this mean that Scotch prices will drop, in the US, at home and maybe in the rest of the world?
Have you ever seen any company lower all the list prices of their products as a result of lower taxes?
You’ve answered your own question…