Biden Admin trade deal suspends 25% tariffs on Scotch whiskey
Slàinte mhath! to American Scotch whiskey aficionados. (It’s “Cheers” or “Good health,” if you’re unfamiliar with Scottish Gaelic, pronounce “SLAN-ge-var”.) Here’s the reason for the toast: President Joe biden’s The administration has struck a trade deal with the UK that suspends a 25% tariff on a variety of UK goods, including British-made Airbus aircraft parts, edibles like cookies and sour cream , and this delicious fermented concoction of malted barley known as Scotch whiskey.
Tariffs were initially imposed as a retaliatory measure during the administration of the former president Donald trump, linked to a long-standing dispute over EU aid to Boeing and Airbus. Their elimination has been a top priority for the British Prime Minister Boris Johnson, both to strengthen UK-US trade relations and support their post-Brexit economy.
“From the distillers of Scotch Whiskey to the makers of Stilton, companies across the UK will benefit from the US decision today to suspend tariffs in this dispute,” Johnson said. “It shows what the UK can do as an independent trading nation, making deals that support our businesses and support free and fair trade.”
According to Boston Globe, “Britain lowered tariffs on certain American products indefinitely in January in an attempt to reduce trade tensions,” but the Trump administration “has not returned the UK concession.”
The new deal means that UK products like the aforementioned Scotch whiskey can be imported into the US without the 25% tariff, which will be suspended for four months, leaving time to “focus on negotiating a settlement.” balanced disputes, ”the UK government said. said in a statement.
The Scottish reported several quotes British politicians touting the trade deal, including the secretary for international trade Liz truss, who said she was “delighted to say that our American allies – under the leadership of their new president and his hard-working U.S. Trade Representative – have embraced our initiative to seek a fair settlement.”
America is the “most valuable market” for Scotch whiskey distillers, Truss said. “The easier it is for Americans to buy a bottle of Macallan, Talisker or Glenfiddich, the more these producers will have to invest in their businesses, their people and their future.”
Scottish Conservative leader Douglas ross called the deal a “big step forward” and a Brexit advantage, being able to negotiate directly with the US while the rest of the EU remained mired in the Boeing-Airbus dispute.
Unsurprisingly, the Scotch Whiskey Association called the tariff suspension “fabulous news.”
“Today everyone in our industry – from small businesses to large – breaths a sigh of relief,” said the head of the Association. Karen betts, citing a 35 percent drop in exports to the United States during the 16 months of tariffs, an estimated loss for Scotch whiskey distillers of more than half a billion pounds.
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