Daily Management Review

US Suspends Tariffs On UK Goods Including Single Malt Scotch Whisky


US Suspends Tariffs On UK Goods Including Single Malt Scotch Whisky
The United States has suspended import tariffs on a number of goods from the United Kingdom including on single malt whiskies. The tariffs were imposed as a part of the case related to the subsidies to the aircraft maker Airbus.
Cheese, cashmere and machinery form the UK will also see tariffs on them lifted,
This suspension will be for four months in which the two sides will try to work out a long-term agreement.
The tariffs imposed on US goods were dropped by the UK on 1 January which was imposed in the case related to US subsidies to Boeing.
The European Union and the US have imposed tariffs on each other’s goods worth billions of dollars in relation to the decades-old trade row over aircraft making subsidies.
UK being a former member of the EU is also a part of the dispute. The wings and some other aircraft parts are made by Airbus in the UK while the company assembles the planes in the EU.
The tariffs imposed by the US had particularly impacted the makers and exporter of Scotch whisky since the US was a crucial export market for the product. Since 2019 when the US tariffs were imposed, losses of £500m have been reported by distilleries.
British sales would be boosted by the suspension of the tariffs set to be implemented from Monday, said UK Prime Minister Boris Johnson.
"From Scotch whisky distillers to Stilton-makers, the US decision to suspend tariffs on some UK exports today will benefit businesses right across the UK," he tweeted. "Fantastic news as we strengthen the UK-US trading relationship and work to build back better from the pandemic," he added.
He's "absolutely delighted" the tariffs have been suspended, Simon Cotton, boss of Speyside-based textiles firm Johnston's of Elgin, told the BBC. A "25% hit" on every knitwear product it exports to the US was being taken by the company which has a staff strength of 850 and this additional cost was significant given the tough times for British industries because of the Covid-19 pandemic hit and Brexit. 
The impact of the US tariffs has been felt by a number of other businesses in Speyside which includes whisky distilleries and shortbread makers.
"This has been a particularly difficult tax for the businesses here, so it's a huge relief for the region," said Cotton. "We're hoping this paves the way for a permanent removal of these tariffs."
The suspension of the tariffs was described as "fabulous news" by Karen Betts, head of the Scotch Whisky Association.
"The tariff on single malt Scotch whisky exports to the US has been doing real damage to Scotch whisky in the 16 months it has been in place, with exports to the US falling by 35%," she said. "So today, everyone in our industry - from small companies to large - is breathing a sigh of relief," she added. 
It has been more than a decade that the EU and the US have been accusing each other of providing subsidies to their respective aircraft makers – Airbus and Boeing.
(Source :www.bbc.com)