3rd Apr 2025 11:00
(Alliance News) - Scotland's Deputy First Minister has called on the UK Government to leave no stone unturned in efforts to secure a trade deal with America, as she warned tariffs imposed by US President Donald Trump will impact on some of Scotland's key industries.
Kate Forbes said the Scotch Whisky Association had already estimated the 10% tariff imposed by the billionaire politician could result in between GBP200 million and GBP400 million worth of export losses annually.
On the imposition of tariffs, the Deputy First Minister said there was "no doubt this will have an impact on some of our key industries".
Her comments came after Trump confirmed that from 5am UK time on Thursday, a 25% tariff will be imposed on all foreign cars imported to the US – a move which experts fear could cost 25,000 jobs in the British car industry.
The US President also indicated tariffs of 10% would apply to other products from the UK – the same level as the global "baseline" he was setting for countries around the world as part of "reciprocal" measures that will come into force from 0500 BST on Saturday.
The Scotch Whisky Association has already said it is "disappointed that Scotch whisky could be impacted by these tariffs".
William Wemyss, the founder & chair of Wemyss Family Spirits, which has the Kingsbarns Distillery near St Andrews, Darnley's Gin and Wemyss Malts among its brands – said that 10% tariffs would be a "damaging setback for our industry".
He stated: "As a small, family-owned Scotch whisky business, we rely on stable, tariff-free trade to grow, invest and bring our products to whisky lovers across the Atlantic.
"The US is our single largest export market, and demand remains strong, but tariffs inject real uncertainty, particularly for independent producers like us."
Forbes said, overall, the US is "Scotland's second largest export market for goods and services, after the EU".
Speaking on BBC Radio Scotland's Good Morning Scotland programme, she added: "It is also our largest inward investor, so clearly there will be an impact and, last year, exports of Scottish goods to the US were worth about GBP4 billion, that is 17% of the value of all Scottish goods exports."
The Scottish government is in "continuous engagement" with Westminster and the affected industries about the impact tariffs will have.
But Forbes made clear a trade war with the US was not the answer, saying instead the UK Government should seek a more advantageous deal with the Trump administration.
While she accepted these issues were reserved to the UK government, Forbes said: "Our job is to stand up for Scottish industry, to represent their voices and to ensure they are not forgotten in any negotiations with the US government.
"Over a quarter of the exports are beverages, but there are other key Scottish exports to the US, including machinery, pharmaceuticals, and chemicals."
Prime Minister Keir Starmer has already said that the UK government will respond to the new tariffs with "cool and calm heads"
And Forbes stated: "We know that the resolution here is to work towards a mutually beneficial resolution.
"The answer is not to go into a full-scale trade war in which nobody wins, that is the worst of all worlds.
"We want to see the UK Government leaving no stone unturned to find a mutual, beneficial resolution and to recognise the potential opportunities of a trade agreement with the US.
"Escalating this higher and higher is not going to be to the advantage of Scottish jobs, Scottish industries, who currently rely on American markets to quite a great extent."
By Katrine Bussey, PA Scotland Political Editor
Press Association: Finance
source: PA
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