Whiskey body fears cross-border 'disparity' on tariffs

The Irish Whiskey Association (IWA) said it welcomes "any move towards restoration of tariff-free transatlantic spirits trade" following a decision by US President Donald Trump to remove tariffs on Scotch Whisky imports.

In a statement the IWA, which represents whiskey producers on the island of Ireland, said it shares "the goal of the US distilling industry - return to the zero-for-zero regime that built our sector together and hope to see this extended to all spirits categories".

"The fundamentals that underpin the decision to remove tariffs on Scotch Whiskey equally apply to Irish spirits trade with the US," the association said.

"Just as the Scotch Whisky and Kentucky Bourbon sectors enjoy close cooperation and cross-investment, so too does the Irish Whiskey sector.

"This has brought our Irish Whiskey distillers notable success in the US market, where we now have an export value of €450m annually, part of an €800m export value for our drinks sector overall."

Amid reports the removal of a tariff on Scotch Whisky would also apply to Irish Whiskey produced in Northern Ireland, the IWA noted that Irish Whiskey "is a single GI [geographical indication] covering the whole island of Ireland".

Eoin Ó Catháin, Director of the IWA, told RTÉ's News at One that "it is the Irish Whiskey Association's "understanding" that it will lead to a "tariff liberalisation for Irish Whiskey produced in Northern Ireland".

But he said when that will take place is "all very unclear," and that it could also result in a "disparity" between producers in Ireland and Northern Ireland.

He said that would be "unfortunate" if it materialised that way and something the Irish Whiskey Association, which is an All-Ireland body, has been "seeking to avoid" throughout the uncertainty around tariffs.

A spokesperson from the Department of Foreign Affairs and Trade said that the Government continues to advocate strongly for reduced tariffs on Irish Whiskey in discussions with US and EU partners.

It said the minister has noted the statement by the US president following the recent visit of King Charles to the US regarding whiskey tariffs.

It said they are also aware of the statement from the US Trade Representative that this commitment will be implemented in the framework of the economic prosperity deal between the UK and the US.

The statement said there is no immediate adjustment to tariff schedules and both Irish and Scotch whiskies are currently tariffed at 10% under section 122 tariffs announced on 2 April.

The department said their advocacy for the need to reduce tariffs on Irish Whiskey will continue, including taking advantage of all available opportunities and avenues.

Mr Ó Catháin said the IWA has been in touch with the Irish Government and the European Commission and "we understand that the zero-for-zero for spirits producers, for Irish whiskey, for Irish cream [liqueur] ... remains a priority for them.

"Perhaps the gate has been opened and perhaps then we can try and see if we can get through.

"We're all adopting a wait and see approach but we're hoping that this is the first step in a return to a positive trading relationship," he said.

Trump to remove scotch levy 'in honour' of King Charles

US President Donald Trump said yesterday he will remove tariffs on Scottish whisky following a visit from Britain's King Charles and Queen Camilla.

The US president cited the Scotch industry's relationship with the American bourbon industry and the impact of the royals' visit to the White House this week. Most Scotch producers source their casks from the US.

Mr Trump said that while "people have wanted to do this for a long time" the King and Queen "got me to do something that nobody else was able to do".

The Scottish and UK governments had been lobbying Mr Trump to end tariffs on the industry, as the US is the single biggest market for Scotland's whisky.

The US is also the biggest market for Irish whiskey, which attracts a 10% tariff, in line with other EU spirits exports.

Scottish First Minister John Swinney previously went to the White House to press the president following discussions during his visit to Scotland last year.

Confirming the news, Mr Trump posted on his Truth Social platform: "In honor (sic) of the King and Queen of the United Kingdom, who have just left the White House, soon headed back to their wonderful Country, I will be removing the Tariffs and Restrictions on Whiskey having to do with Scotland's ability to work with the Commonwealth of Kentucky on Whiskey and Bourbon, two very important Industries within Scotland and Kentucky.

"People have wanted to do this for a long time, in that there had been great Inter-Country Trade, especially having to do with the Wooden Barrels used. The King and Queen got me to do something that nobody else was able to do, without hardly even asking!

Mr Swinney hailed the decision as "tremendous news for Scotland".

He said: "As First Minister, I have made it my mission to do everything possible to lift US tariffs on our whisky.

"People's jobs were at stake. Millions of pounds were being lost every month from the Scottish economy.

"Yet despite this, and despite months of trade talks, it was obvious to me that the UK government had done little to raise the issue of Scotch whisky, and the US president was not aware that there was an issue until he came here to Scotland.

"By meeting the president during his visit to Scotland and by going to Washington, to the Oval Office, we made Scotland's case. We worked directly with the Scotch Whisky Association to get Scotland's voice heard.

"And, we used every chance to drive our point home, not least the State Banquet hosted by His Majesty The King in London last September."

Mr Swinney said that "hard work" had "paid off" and expressed his thanks to the president "for listening and acting to lift the tariffs".

He also said that Scotland was "grateful" to the King for the "key role he played in this tremendous success".

"Scotland needs a government that is always on Scotland's side," he added.

"It needs experienced leadership that is focused on delivering and knows how to get things done at the very highest level.

"That is what we offer and today shows how important it is."

Business and trade secretary Peter Kyle said: "This is great news for our Scotch whisky industry, which is worth almost £1 billion [€1.16m] in exports and supports thousands of jobs across the UK.

"I have been advocating for lower tariffs on key exports like whisky to protect vital jobs and iconic British brands while strengthening our relationship with the US."

Whiskey producers in Ireland are unsure what impact the decision by Mr Trump to remove the tariff on Scotch whisky will have on the Irish whiskey sector.

Industry sources have said they are trying to confirm the details, however, some fear that once the change is confirmed it would apply to Irish whiskey in Northern Ireland but not in the Republic.

The full implications are unlikely to be known until an executive order on the tariff reduction is published.