The International Trade Secretary (Rt Hon Liz Truss MP) has announced that she has come to an agreement with her US counterpart to remove US tariffs on cashmere and Scotch whisky from Monday.
The removal will last for four months to allow US and UK negotiators to come to a wider agreement on trade and tariffs.
Due to a long-standing trade dispute between the US and the European Union about aeroplane manufacturing, 25% import tariffs were imposed by the US administration on cashmere products, including those made in the Scottish Borders.
This led to textile mills in Hawick and elsewhere in the Borders struggling to export to US customers. There were concerns that this would cost investment and jobs in the area.
The Scotch Whisky Association has previously said that these tariffs, like those on cashmere, have cost the industry £500m since they were imposed.
Borders MP, John Lamont, has consistently pressed the UK Government to come to an agreement with the US to remove the taxes.
Since the tariffs were imposed in late 2019, Mr Lamont has raised the issue nine times in the House of Commons, including with the Prime Minister. He has also met with the US Ambassador to the United Kingdom and with the Secretary of State for International Trade.
He also recently secured a meeting between the Business Secretary, Kwasi Kwarteng, and Borders textile mills affected by the tariffs.
John Lamont MP said:
“Textile firms in the Borders have rightly been anxious to see these tariffs removed by the USA as quickly as possible. These tariffs, coming from the US-EU trade dispute, were putting at risk jobs and investment, particularly in Hawick.
“I’ve raised this many times in Parliament, including at the very highest level of the UK Government. I’ve also met with the US Ambassador to help push the case for removal.
“I am absolutely delighted that this temporary removal of tariffs has finally happened, which will hopefully allow a more permanent solution to be negotiated in the coming months.
“I hope this will provide a much-needed boost to textile mills in the Borders, and to the Scotch whisky industry as well.”
Rachael Hamilton MSP said:
“The provisional removal of US tariffs on cashmere goods is welcome news for the Borders.
“The EU-US trade dispute meant tariffs were imposed back in 2019, and have cost the industry in terms of jobs and investment.
“Now that we have left the EU, the International Trade Secretary, the Rt Hon Liz Truss MP, has announced that she has come to an agreement with her US counterpart.
“In the coming months, I hope that agreement is reached, so that cashmere produced here in the Borders can be exported on a tariff-free basis to the US in the long term.”
