TARIFFS on Scotch imposed on the United Kingdom by the US in retaliation to an ongoing trade row are removed.

A 25 percent tax on all Scotch exports to America was imposed during an escalating trade dispute between the US and EU while Britain was still a member. During a boost for the UK's relationship with America, the tariffs on British goods have now been lifted.

The US has suspended the levies for four months while negotiations between the United Kingdom and US on a long-term solution happen.

Tariffs on cashmere, machinery and other products have also been suspended as a part of the agreement.

President Donald Trump first introduced the additional measures in October 2019 in retaliation to the EU giving state support to the aviation firm Airbus, which the US said was having a negative impact on America's Boeing company.

Announcing tariffs were being suspended, a joint statement said: "The UK and therefore the US are undertaking a four-month tariff suspension to ease the burden on industry and take a bold, joint step towards resolving the longest-running disputes at the World Trade Organization.

"This will allow time to specialise in negotiating a balanced settlement to the disputes, and start seriously addressing the challenges posed by new entrants to the civil aviation market from non-market economies, like China."


International Trade Secretary Liz Truss said she was "delighted" by the US's decision.

She said: "Our American allies under their new President and his hard-working staff at the US Trade Representative - have embraced our move to hunt a good settlement."

In December Ms Truss said the United Kingdom would be unilaterally dropping the tariffs imposed on the US by the EU once it left the transition period, during a bid to de-escalate the conflict.

She said: "As an independent trading nation once more, we finally have the power to shape these tariffs.

"Ultimately, we would like to de-escalate the conflict and are available to a negotiated settlement so we will deepen our trading relationship with the US and draw a line under all this."

Since the tariffs on Single Malt Scotch were introduced, the Scotch Association says exports to America have fallen by quite 30 percent.


More than half a billion pounds are lost to the industry due to the decrease in sales abroad.

Chief Executive of the association Karen Betts praised "the diligence of Liz Truss" in reaching a resolution on the difficulty and said the industry would "certainly be raising a dram to her tonight".

She added: "Today, everyone in our industry – from small companies to large – is breathing a sigh of relief.

"Suspending these tariffs – stemming from a transatlantic trade dispute that had nothing to do with us – and a return to tariff-free trade with the US means livelihoods and communities across Scotland are going to be protected.

"It means companies can now really specialise in recovery – on building back the American market also as on building back global exports hit by the coronavirus pandemic."

Prime Minister Boris Johnson said the announcement today was proof of what the United Kingdom could do outside of the EU.

He said: "From Scotch distillers to Stilton-makers, businesses across the United Kingdom will enjoy the US decision today to suspend tariffs during this dispute.

"It shows what the United Kingdom can do as an independent trading nation, striking deals that back our businesses and support free and fair trade.

"I now anticipate to strengthening the UK-US relationship, as we drive economic process and build back better together."

The UK is additionally hoping to strike a trade affect the US within the coming months.

Ms Truss labelled securing an agreement as a "priority" for her department in 2021.

It is believed a trade deal could eliminate almost £500million in tariffs on UK exports to the US.

Former MEP and Brexit Party leader, Nigel Farage said the US's decision was a promising sign.

"Perhaps Biden realises that we are more of a lover than the EU," he said.