Strategy needed to support Scotch if Trump brings in new tariffs – Carmichael

Orkney and Shetland MP, Alistair Carmichael, has called for the government to prepare a strategy to support the Scotch whisky industry in the event of tariffs being placed on the industry by President Trump. 

Speaking during a parliamentary debate on government support for the Scotch whisky industry, led by Graham Leadbitter MP, Mr Carmichael noted the harm that was done to the sector by a previous 25% tariff on whisky between October 2019 and March 2021. The Scotch whisky industry has estimated that it lost over £600m in exports to the United States over this 18-month period.

Speaking during the debate, Mr Carmichael said:

“The hon. Gentleman is speaking about exports. We know the damage done to the Scotch whisky industry when we last suffered tariffs as a consequence of US trade policy—nothing to do with President Trump, it has to be said, but due to an old trade dispute. Surely this is the point at which the Government should be thinking ahead and putting a strategy in place to help the industry should, heaven forfend, we find ourselves back to that place as a consequence of the new regime in the White House?”

Responding, Graham Leadbitter MP said:

“I thank the right hon. Gentleman for making that point, which I will come on to a little bit later in my speech.”

Later he added:

“We must continue to strengthen our trade relationships. While this debate is rightly focused on UK actions, it will not have bypassed hon. Members that there has been significant media comment on tariff actions taken by the US Administration in recent weeks, and on what potential future actions may be taken. Combined with global headwinds affecting the wider luxury brands market, it has unsurprisingly generated comment and speculation, both from within the sector and elsewhere. Maintaining a watchful eye and accentuating the positives of the existing trade relationships remain vital.”

Speaking after the debate, Mr Carmichael said:

“All indications are that US trade policy will be haphazard and capricious in the next few years so we cannot afford to take anything for granted, whether for flagship exports like Scotch whisky or anything else. The best answer to this is to work more closely with our other trading partners, particularly in Europe. The sooner the government grasps this, the better.”