JOE Biden has paused Donald Trump’s tariffs on whisky exports to the United States in a half a billion pound Brexit bonanza.
The US slapped crippling 25pc taxes on British exports like scotch or JCBs in 2019 in a row with the EU over aeroplane parts.
Research by the Scotch Whisky Association research shows it has cost the industry more than £500 million so far in lost business.
But free from Brussels, Liz Truss negotiated a new deal with the White House that will see the punishing tariffs suspended from Monday.
It’s a massive boost for Scottish industry on the elections north of the border – and will also boost experts of cashmere and cheese.
The UK exported £340m of single malt to the US in 2018, and £60m of construction vehicles and £45million worth of cheese.
The UK and US governments have today committed to “a joint de-escalation” of the long-running dispute between aerospace giants Airbus and Boeing dispute.
Britain suspended tariffs on Boeing parts last December in a good will gesture.
On Monday, the United States will temporarily suspend all retaliatory tariffs on direct exports from the UK to the US resulting from the Airbus dispute for four months, in an effort to reach a negotiation solution to the 16 year long row.
Trade bosses say the move will help struggling producers protect jobs in Scotland, where the Scotch industry supports 50,000 workers, with whisky tariffs being slashed from 25% to zero.
Scotch was the UK’s largest food and drink export in 2020, and exports of single malts to the US were worth around £340m in 2018.
Prime Minister Boris Johnson said today: “From Scotch Whisky distillers to Stilton-makers, businesses across the UK will benefit from the US decision today to suspend tariffs in this dispute.
“It shows what the UK can do as an independent trading nation, striking deals that back our businesses and support free and fair trade.
“I now look forward to strengthening the UK-US relationship, as we drive economic growth and build back better together.”
Trade boss Liz Truss said today: “I am delighted to say that our American allies – under their new President and his hard-working staff at the US Trade Representative – have embraced our move to seek a fair settlement.
“This is Global Britain in action: securing new opportunities as a newly nimble nation.
“And the benefits will be felt across our nation, especially in Scotland, as Scotch whisky, the UK’s largest food and drink export in 2020, will be even better value for consumers in the United States, its most valuable market.
“The easier it is for Americans to buy a bottle of Macallan, Talisker or Glenmorangie, the more money those producers will have to invest in their businesses, their staff and futures. This news shows– put simply – that trade equals jobs.”
Ms Truss also cited the benefits for cashmere producers in Ayrshire, who export goods worth £12m to the US annually and English cheesemakers who export £46m worth to America.
The UK and US are continuing to work towards an ambitious trade deal, which could eliminate almost £500m in tariffs on UK exports to the US.
Chief Executive of the Scotch Whisky Association Karen Betts hailed the news today.
She said: “This is fabulous news, and our industry is delighted.
“The tariff on Single Malt Scotch Whisky exports to the US has been doing real damage to Scotch Whisky in the sixteen months it has been in place, with exports to the US falling by 35%, costing companies over half a billion pounds.
“So today, everyone in our industry – from small companies to large – is breathing a sigh of relief.”
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