UK-US Trade and Tariffs

Douglas McAllister Excerpts

Thursday 3rd April 2025 Commons Chamber

[Douglas McAllister (West Dunbartonshire) (Lab)]

I thank the Secretary of State for his statement. The announcement of a 10% tariff on all products exported from the UK to the United States means that for the second time in just five years, the Scotch whisky industry could be impacted by tariffs in the industry’s largest global market. That will be concerning news across communities where Scotch whisky is a major employer, including in my constituency. Scotch whisky makes up a quarter of all Scottish exports to the US, but it is not one-way traffic; to give just one example, the Scotch whisky industry imports up to $300 million of ex-bourbon casks every year. I urge the Secretary of State to work with the US Administration and ensure that a mutually beneficial resolution can be agreed as soon as possible to support the Scotch whisky industry.

[Jonathan Reynolds]

I am incredibly grateful to my hon. Friend for his question and for his accurate insight into some of the co-dependencies and relationships that exist between Scotch whisky and other key international sectors of the food and drink economy. If he ever wants to come and see me in my office in the Old Admiralty Building, I keep a bottle of Lagavulin there, which I think we can all agree is an excellent choice. You would be welcome to come for that conversation at any time, Madam Deputy Speaker. We have to keep the numbers down, but we will look at that if we come through with a deal. [Interruption.] Of course the shadow Secretary of State would also be very welcome to come—what an excellent meeting we have just set up accidentally.

Often an equivalence is made in some markets between, for instance, the tariff on bourbon from the US and Scotch whisky. A comparison is made, and those are often seen as competing products, but there is an interdependency as well. The point about the sherry barrels is also really important and fascinating. I can tell my hon. Friend that we are in regular contact with the Scotch Whisky Association, which is tremendously supportive as a resource to us and is very closely engaged with Government. These issues, which are so important to his constituency, are always considered and prominent at the highest levels in Government.