Trump tariffs on UK would be 'devastating' for Scottish industry

Mr Trump said he would impose 10 per cent tariffs from February 1 - rising to 25 per cent in June - until a deal is reached for the US to buy Greenland from Denmark.

Mr Trump last night said he would “100 per cent” follow through with his threat of extra levies on eight countries who do not support the takeover.

Scotch whisky, textiles and salmon - who already pay 10 per cent tariffs on exports to US- could be badly impacted by further levies which have also been threatened against Denmark, Norway, Sweden, France, Germany, the Netherlands and Finland – all of whom are members of Nato.

Richard Lochhead, Minister for Business and Employment, who represents Moray constituency, a major whisky producing area, said: “Any additional tariff on Scotch whisky and other sectors in Moray will be damaging and it is completely wrong for the US to use tariffs in this way.

“The whisky industry, for instance, is already suffering as a result of the existing 10% tariff imposed by the US, as we can see in Speyside where production is being scaled back.

“The US is the sector’s most valuable market and this is not just about distilleries, but the whole supply chain from hauliers and maltings to arable farmers. All would be affected.

“I urge the US to focus on dialogue not tariffs and all countries need to send that message to the US administration.”

Whisky exports to the US were worth almost £1 billion in 2024 .

The Scotch Whisky Association earlier estimated that the existing 10 per cent tariff cost the sector around £4m a week.

Some distilleries have switched production from seven days a week to five, with output scaled back given a fall in demand.

Shadow business secretary Murdo Fraser said the US President’s plans would be “deeply damaging” for jobs and economic growth across Scotland.

Mr Fraser said: “This latest threat by President Trump to impose more tariffs would be devastating for industries key to Scotland’s economy.

“Our whisky and textile sectors in particular will be alarmed at his plans which could see them hit by further additional costs in a matter of weeks at a time when they are already suffering.

“More tariffs would be deeply damaging for jobs and economic growth across Scotland, with the whisky industry having lost 1,000 jobs in the last year alone.

“I have submitted a question to SNP ministers asking them to outline how they will do everything they can to protect jobs and make it clear in no uncertain terms to President Trump that these tariffs should not be introduced.”

First Minister John Swinney and a delegation visited Mr Trump in Washington last September to lobby for a reduction in the 10 per cent tariff already added to whisky imported from the UK to the US.

Mr Fraser added: “John Swinney appeared confident that a deal could be done on existing tariffs following his White House visit a few months ago, but right now that appears miles off.”

Scotch whisky makers said they were concerned about the threat of further tariffs.

Leonard Russell, the managing director at Ian Macleod Distillers, said that “an increase in tariffs will be a serious blow on both sides of the Atlantic”.

David Graham, the director of the GlenWyvis Distillery in the Highlands added: “For smaller distilleries like ourselves, it presents further barriers to entering the American market which could help us create great jobs in the Highlands. Everyone loses out.”

The Scotch Whisky Association and Salmon Scotland declined to comment until the situation develops.

Meanwhile, First Minister John Swinney accused the US President of issuing “economic threats” which are “deeply damaging”

He said the threatened tariffs were “the wrong thing to do” claiming they would harm the economy of Scotland and the UK.

Mr Swinney said: “They have the risk of undermining the economy of Scotland and the United Kingdom because of the scale of the tariffs but they also risk undermining the security and the safety of the Nato alliance because of the steps, and the approach, that have been taken in relation to Greenland.

“So, at an economic level, and at a security level, this approach being taken by President Trump is wrong and should not be pursued.”

He added: “I think that this can be resolved and should be resolved through calm discussion, but with the application of the principles and values that I’ve set out in terms of who decides the future of Greenland, and making clear that the use of tariffs in this way is completely wrong.”

Meanwhile, Sara Thiam, Chief Executive of Prosper, a cross-sector membership think tank that aims to strengthen Scotland's economy, said: “Scottish businesses, including our members, are worried by the prospect of a 10 per cent tariff on UK exports to the US. Many rely on strong trading links with America, and any extra cost makes it harder to compete, particularly for small and medium-sized businesses. At a time when companies are already dealing with rising costs and uncertainty, this adds another layer of pressure.

“As Scottish exporters face growing international headwinds, it is also incumbent on the Scottish and UK Governments to ensure that domestic policies and regulations help ease costs for businesses and facilitate a competitive operating environment."

In an emergency address from Downing Street, Sir Keir Starmer called for calm and said the crisis over Greenland and Trump’s tariff threat was a “moment for the whole country to pull together”.

Asked if he believed Mr Trump was genuinely prepared to invade Greenland, The Prime Minister told reporters: “I don’t, actually.”

The Prime Minister said the dispute over the mineral rich territory, which Mr Trump wants to take over because of its strategic Arctic location, should be resolved through “calm discussion between allies” rather than military action or a trade war.

He signalled Britain would not engage in a trade war over the dispute as this was “not the right way to resolve differences within an alliance”.

Sir Keir reiterated his stance that the future sovereignty of Greenland is solely a matter for it and Denmark, and added: “The use of tariffs against allies is completely wrong.

“It is not the right way to resolve differences within an alliance, nor is it helpful to frame efforts to strengthen Greenland security as a justification for economic pressure.”

In a sign of the seriousness with which the Government appeared to be taking the threats from the US, Chancellor Rachel Reeves was among the senior Cabinet ministers who sat in the audience at the Prime Minister’s announcement, having pulled out of a Monday morning event at the London Stock Exchange.

Sir Keir also abandoned plans for a Monday cost-of-living related visit at the 11th hour to make the announcement.

The Prime Minister said he will speak to the US president about Greenland again “in the coming days”.

Mr Trump is expected to attend the World Economic Forum in Davos, Switzerland this week.

Chancellor Ms Reeves and Foreign Secretary Yvette Cooper are expected to attend the gathering, but there are no current plans for Sir Keir to go, it is understood.