The United States has temporarily suspended all tariffs on direct exports from the UK to the US resulting from a 16 year long Airbus dispute. The measure has been backdated to 4 March.
In 2018, the year before the tariffs were imposed, the US imported around £550m of goods affected by these measures from the UK. The tariff suspension will help protect jobs on both sides of the Atlantic in industries who have been targeted by these unfair tariffs, particularly Scotch whisky. Scotch was the UK’s largest food and drink export in 2020, and exports of single malt Irish and Scotch whiskies to the US were worth around £340m in 2018.
This follows the UK’s decision to suspend Boeing tariffs against the US from January, a show of good faith which ensured the UK was not hit by further tariffs and allowed both countries to work on ending the dispute and focus on deepening our future trading relationship.
The Prime Minister Boris Johnson said:
International Trade Secretary Liz Truss said:
Scottish Secretary Alister Jack said:
The Department for International Trade say they will continue to engage with the US to agree a fair settlement to the dispute, that removes punitive tariffs and works for the whole of the UK.
This announcement will protect jobs across the UK – as well as Scotch whisky producers, it would also benefit businesses including:
- Cashmere producers in Ayrshire, in 2018 the UK exported to the US around £11m worth of the knitted and crocheted clothing that were targeted by the tariffs, of which around £6m are cashmere.
- Pig farmers in Yorkshire, in 2018 the UK exported to the US around £38m of the pig meat that was targeted by the tariffs.
- Stilton makers in the Midlands, in 2018 the UK exported to the US around £45m of the cheeses that were targeted by the tariffs, of which around £4m was stilton cheese.
The UK will continue to engage with the US to agree a fair settlement to the dispute, that permanently removes punitive tariffs and works for the whole of the UK. This would benefit the UK’s aerospace industry which employs people across the country, including Wales, Belfast and Sheffield.
The UK and US are continuing to work towards an ambitious trade deal, which could eliminate almost £500m in tariffs on UK exports to the USA.
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