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Whisky industry expert Mark Littler, owner of the world renowned The Whiskey Wash, says the actual big fear for the Scotch producers is not the 10% tariff, but a global trade war which sees their huge Asian market impacted.
We’re already seeing markets dumping as Trump’s taxes start to bite, and Littler warns the knock-on effect in reduced confidence across the Asia-Pacific region is a real concern for the UK exporters.
Littler said, “A 10% tariff is far from ideal, especially in an economic climate where consumer spending is already under pressure. For some producers, particularly smaller ones or those heavily reliant on the U.S. market, this will be a real challenge. But the industry has dealt with worse.
“During the previous 25% tariff period, many producers worked closely with importers and distributors to find ways to share the cost and keep prices stable. We may well see similar strategies again this time.
“That said, the broader concern lies elsewhere. The much steeper tariffs imposed on China and several other Asian countries could disrupt trade flows and consumer confidence across the Asia-Pacific region.
“If rising tensions lead to economic uncertainty or reduced consumer spending in key Asian markets, the knock-on effect for Scotch exports could be more serious than the US tariff itself.
“Asia is a strategically important region for Scotch whisky, and if sentiment weakens in countries like China, South Korea, or Japan, the impact could be deeper and more sustained.
“The 10% tariff is a concern, but the indirect consequences of global trade friction may ultimately prove more significant.”
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