Are Tariffs the New Curse for Scotland's Exporters? Unpacking Trump's Impact on Whisky and Salmon Industries

Scotland’s exporters are feeling the pinch as President Donald Trump’s new 10% tariffs on various imports take effect, causing deep concerns within key sectors such as whisky and salmon. The Scotch whisky industry, vital to Scotland’s economy, views the tariffs as a major setback that threatens the lucrative US market, which worth nearly £1 billion in 2024 alone. Kate Forbes, Scotland’s Deputy First Minister, articulated worries that these levies would negatively impact the Scottish economy, urging negotiations for a more amicable resolution.

The tariffs, introduced under the guise of encouraging American consumerism and dubbed ’liberation day’ by Trump, mark the latest chapter in a history of trade tensions linked to previous tariffs imposed during Trump’s first presidency that cost the whisky industry approximately £600 million. Anthony Wills, owner of the Kilchoman distillery, observed that these tariffs might cost his business 10% of sales, necessitating tricky negotiations with his American partners to balance the burden without alienating customers.

Scotland’s salmon industry, another key player, is also reeling from the tariffs. With the US ranking as its second-largest export market, worth about £225 million, the sector remains hopeful for a sustainable trade relationship. According to Tavish Scott, CEO of Salmon Scotland, stability in trade relations is a priority, echoing sentiments shared by other industry leaders.

Trump’s tariffs come amid a backdrop of turbulent economic forecasts for Scotland, as highlighted by the Fraser of Allander Institute, which noted a trend of growing uncertainty among businesses. Prime Minister Sir Keir Starmer seeks to prevent a potential trade war, while concerns about domestic price inflation loom large due to tariffs on broader goods such as foreign-built cars, and metals.

The ongoing saga highlights the delicate balance between protectionist policies and robust international trade relationships, as local leaders advocate for collaboration while grappling with new economic challenges.