Nicola Sturgeon has vowed to “very closely” monitor a trade row between the EU and US amid concerns it could hit the Scotch whisky sector.
Fears have been raised that a “full-blown trade war” could erupt between them, with whisky producers in the north and north-east left in the firing line.
It follows the EU’s decision to impose a tariff on bourbon from the US, which sparked fears that Donald Trump’s government could move to retaliate against Scotch whisky.
The issue was raised at first minister’s questions in Holyrood yesterday by Moray MSP Richard Lochhead.
Ms Sturgeon said: “We are very concerned that the US decision to impose tariffs on steel and aluminium, and the subsequent European Union decision to impose tariffs on a range of US products, will escalate into a full-blown trade war.
“That will affect Scottish producers and the Scottish economy. The United States is Scotland’s largest international export market, worth £4.8 billion in 2016.
“The imposition of tariffs on bourbon and related spirits, in particular, increases the risk of US measures on Scotch whisky.
“That could have a significant impact on an industry that provides around 10,000 full-time equivalent jobs in Scotland and, of course, a similar number in the wider supply chain.”
The SNP leader also questioned why the UK Government had not objected to the EU’s move against bourbon.
Ms Sturgeon added: “The Scottish Government will monitor the situation very closely, such is its seriousness for the Scotch whisky sector and other sectors of our economy.”
Last night, Mr Lochhead said: “I thank the first minister for her answer and welcome the fact that she shares my concern that the potential impact of a trade war is compounded by Europe’s decision to impose tariffs on American whiskey and bourbon in response to Donald Trump’s decision to impose tariffs on aluminium and steel, given that the US is the Scotch whisky sector’s most successful global market, worth £900 million in 2017 alone.”
