Borders politicians have welcomed that the US will hold off on a threatened hike in tariffs on EU and UK goods. The tariffs are imposed due to a sixteen year trade battle over state aid for Airbus and Boeing.
Currently there are export tariffs on British products such as single malt whisky and knitwear, with shortbread and other ‘sweet biscuits’ having been removed. The proposed tariff hike would have seen blended whisky and gin added to the list of products facing border taxes.
The Scottish Borders is famed for its high quality knitwear products that are sold around the world. However, businesses have been struggling with exports to the United States due to the extra tariffs.
The Scotch Whisky Association (SWA) say that distillers are losing £30m per month in export value to the US and this is risking jobs and investment.
Rachael Hamilton and John Lamont have been campaigning to see the tariffs reduced which would allow iconic Borders products to be sold to US customers without the extra taxes.
John Lamont MP said: “It is very welcome that the US has decided not to hike tariffs even further which would have been punishing for distilleries across Scotland. It is also welcome that shortbread producers will be able to sell their products in the US without these punishing tariffs.
“However, I am very concerned that tariffs on knitwear and single malt remain. Local mills have made their feelings very clear to me about the problems this is causing for their exports into the United States.
“These tariffs cost local jobs and stop businesses realising their full potential in the Borders. It is unacceptable that they are collateral damage in a trade war over aeroplane manufacturing.”
Rachael Hamilton MSP said: “Our campaign to remove these unfair tariffs continues unabated.
“I am glad that the US has not imposed further increases on tariffs, as this would have further impacted jobs here in Scotland.
“However, the tariffs are a significant barrier for Borders business and I am concerned that is having an added impact in the already difficult economic circumstances.
“These tariffs are costing Scottish distilleries and knitwear manufacturers dearly and I hope that the trade dispute is resolved so that businesses here are not facing the burden”.
