US TRADE tariffs could lead to a loss of £100 million in Scotch Whisky exports, industry experts have warned.

Speaking at a Scotch Whisky reception at Dover House, Chief Executive of the Scottish Whisky Association, Karen Betts delivered a clear message that The UK and US governments must return quickly to tariff-free trade.

“Many smaller Scotch Whisky companies are now asking themselves how they can continue exporting to the US, whether they can build up alternative markets, and if not how their businesses will cope.

“Until a resolution is found, it is critically important that the UK and Scottish governments act to mitigate the impact of tariffs on Scotch Whisky producers, particularly SMEs which are being disproportionately hit," she urged. "A cut to excise duty in the March budget would help businesses strengthen their presence in the UK while exports to the US are under such pressure.”

In October last year, a 25% tariff was implemented on US imports of Single Malt Scotch Whisky and Liqueurs. The SWA predicted that such tariffs could see exports to the US drop by as much as 20% over the 12 months to follow. There is fear that Scotland will soon see a drop-off in investment and productivity and ultimately jobs could be at risk.

The SNP has increased pressure on the Conservatives to protect Scotland’s whisky industry and have warned against a 'race to the bottom' deal with the US.

“Hundreds of Scottish exporters have faced paying the price of punishing US trade tariffs – including Scotland’s world-renowned Scotch whisky industry," claimed the SNP's Treasury spokesperson Peter Grant MP.

“I was part of an all-party group of MPs who met representatives of Scotland’s whisky producers large and small and it was very clear that the impact of the tariffs are already being felt," he continued.

“In November 2019, the value of single malt Scotch whisky exports to the USA were £25.7 million, compared with £38.6 million in November 2018.

“Scotch whisky is crucial to Scotland’s thriving food and drinks sector, with the EU representing the largest single regional export market for Scotch whisky, valued at around £1.4 billion in 2018 - equivalent to around 30% of total scotch exports," he concluded.