First Minister John Swinney to meet President Trump at White House in bid to cut whisky tariffs

John Swinney will meet Donald Trump in the Oval Office on Tuesday, as the First Minister fights for “the very best deal possible for Scotland” on whisky tariffs.

Swinney travelled to the United States to carry out series of trade and political meetings – involving both main US political parties – to argue that as Scotch whisky can only be made in Scotland, it should be exempt from the standard 10% duty charge when it is imported to the USA.

Swinney’s meeting with Trump at the White House, which is due to take place around 7pm GMT, is expected to last around 30 minutes.

It is hoped zero-for-zero tariffs on spirits as part of the ongoing UK-US trade negotiations could be reached.

Prior to the meeting, Swinney said: “When President Trump came to Scotland in July, we raised Scotch whisky with him and got it on the trade deal agenda.

“Now, with just over a week to go before the President makes a State Visit to the UK, we have a critical chance to follow up and make the case for a better deal.”

Tariffs costing industry ‘millions’

The Scotch whisky industry has claimed tariffs on its products are costing the industry millions.

“Scotch whisky holds a unique position, as it can only legally be produced in Scotland,” said Swinney.

“Scotch whisky and Kentucky bourbon have made common cause. This isn’t a case of US business versus imports to the US. Both agree that they want no tariffs. That’s a real strength.

“Today’s discussions with the President are another chance to make that case and to fight for the very best deal possible for Scotland.”

The First Minister has already met representatives and member companies of the Distilled Spirits Council of the United States (DISCUS) and the Scotch Whisky Association (SWA) to make common cause on the tariff issue.

Tariffs are hurting exports, experts have said. iStock

Speaking to STV News, Mark Kent, of the Scotch Whisky Association, explained: “20% of all our exports go to the US and the 10% tariff is hurting them at the moment, costing us about £4m a week, with businesses losing out on investment, employment and growth.

“So, if we can get a zero-for-zero deal, that would benefit the communities in Scotland, the Scottish economy, and it would be a big win.

“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.”

SWA director Graeme Littlejohn argued that Scotch whisky is deserving of a special exemption from the 10% tariff, which was implemented earlier this year.

He said: “The Scotch whisky industry is hugely important to the economy of Scotland.

“It is strategically important to rural and island economies, and the tariffs are doing significant damage at the moment, losing the industry around £4m a week.”

Mr Littlejohn said that SWA figures last week showed “that in the last year over 1,000 jobs in the Scotch whisky industry have been lost”, adding this was “a consequence of US tariffs and also high tax and regulations here in the UK”.

He added: “If we can get those those tariffs off in the United States by the state visit next week, using that as a catalyst for action on these tariffs, that will be a real benefit to jobs and investment here in Scotland.”

‘Best deal for Scotland’

When President Trump was in Scotland over the summer, STV News asked him if he would take another look at the tariff deal on whisky.

He said he wanted Scotland “to thrive” and that he wasn’t aware of the issues with whisky tariffs when STV News first asked him about it.

Ahead of his trip, the First Minister said: “During President Trump’s visit to Scotland in July, we succeeded in putting whisky firmly on the trade agenda and I pledged to do whatever I could to help get a better tariff deal.

“The negotiations themselves are, of course, for the UK negotiating team, but during this trip, we are partnering with industry to promote the interests of Scotch Whisky – a key economic interest and iconic Scottish product – and make the case for a better tariff deal.

“We will argue that the reduction of tariffs is in the interests of the United States as well as Scotland. The United States is the largest market for Scotch whisky but Scottish distillers also spend hundreds of millions of dollars every year buying Bourbon casks from Kentucky.

“With President Trump’s state visit imminent, these are critical days on which hopes of a better tariff deal for Scotch whisky. We are here to make sure we have done everything possible to get the best deal for Scotland.”