Britain hit harder than Europe by Trump’s trade war despite first shipment of tariff-free Scotch whiskey heading to US

THE FIRST shipment of tariff-free scotch whisky will head to the US within 48 hours – but Britain is hit harder than the EU in Donald Trump’s trade war. The US President agreed to lift the levies after King Charles‘ state visit to America earlier this year and the agreement has now come into force. King Charles visited the White House back in February Credit: Getty The first shipment of tariff-free scotch whisky is heading to the US within 48 hours The industry supports 41,000 jobs in Scotland and a further 25,000 across the UK, the Scotch Whisky Association say. Trade Secretary Jonathan Reynolds said: “This historic shipment demonstrates why trade deals with our largest economic partners matter.” Sign up for the Politics newsletter Thank you! But it comes as 10 per cent tariffs are being imposed by the US on 60 countries that haven’t taken action on importing goods made with forced labour. They will replace the temporary 10 per cent levies which came to an end on Friday having been declared illegal by the US Supreme Court. The White House has imposed 10 per cent levies on Britain and the EU. However, the UK must then pay duties on top, whereas Brussels levies are all-inclusive. The trade deal struck with the US means pharmaceuticals, steel and aluminum are protected from these changes. But William Bain, from the British Chambers of Commerce, said: “There will be concerns about the loss of the UK’s competitive advantage over the EU and other countries which have secured a more favourable deal in other goods sectors.” Charlotte Brumpton-Childs, GMB national secretary, said: “The EU now has a better trading relationship with the US than we do – which undermines the so-called ‘special relationship’. Most read in The Sun “Once again, the president’s knee-jerk actions will gain nothing, hurt US business and take dollars out of people’s pockets.” Manufacturing group Make UK said: “The continued application of a 10% tariff underlines the importance of maintaining momentum in UK-US trade discussions under the new Government. “Manufacturers need certainty, stability and the removal of unnecessary barriers to trade so they can remain competitive in an increasingly challenging global market.” Confidence picking up in business, bank survey shows by Ryan Sabey CONFIDENCE levels across SME and mid-market firms is continuing to improve on last month, a survey shows. Company chiefs welcomed cost pressures easing despite optimism overall remaining below long-term average, the NatWest Tracker reveals. Figures show 37 per cent of firms now expect their export sales to rise in the next 12 months but 15 per cent are anticipating a drop. Firms are hoping to invest in overseas market and AI as a route to growth. Output growth for manufacturers in the mid-market recorded their fastest pace since May 2022. Sebastian Burnside, NatWest’s Chief Economist, said: “Manufacturing businesses have faced a lot of headwinds in recent years, from supply chain uncertainty and changing tariffs to the latest energy shock, so the growth they’ve reported in June is both encouraging and desperately needed. “Businesses across all sectors have been grappling with higher costs this year. If the modest fall in pricing pressure shown last month can continue, then it could help growth momentum to build in the second half of the year.” A government spokesperson said: “There is no negative change to the tariff rate facing UK businesses as a result of this announcement. “Our agreement with the US remains in place, and today we see an improvement to our trading terms with zero tariffs on whisky and medical technology. “We take forced labour very seriously to ensure that in global supply chains UK businesses are not complicit. “The US has recognised the steps the UK is taking, which is why there are no additional tariffs for the UK under this announcement.” 1 comment1