The 25 per cent tariffs on single malt whisky exports to the US is set to be lifted after the US and EU reached an agreement in the long-running trade row.
The tariffs have led to whisky exports to the US falling by more than a third, amounting to more than £500 million in lost sales, since the 25 per cent tariff was imposed in October 2019.
A short fourth month suspension of tariffs was secured by Trade Secretary Liz Truss in March but following the resolution of a trans-Atlantic row over subsidies to aircraft manufacturing giants Boeing and Airbus the US tariffs are set to be suspended for five years.
US Trade Representative Katherine Tai said the US and EU have come to terms on a five-year agreement to suspend the tariffs at the centre of the dispute.
She said they could be reimplemented if the US companies are not able to “compete fairly” with those in Europe.
Tai said: “Instead of fighting with one of our closest allies, we are finally coming together against a common threat.”
The deal brings a fresh dose of international goodwill for US President Joe Biden as he heads into a potentially tense summit on Wednesday with Russian President Vladimir Putin.
The trade dispute skyrocketed under the Trump administration, and saw tit-for-tat duties slapped on a range of companies that have nothing to do with aircraft production, from French winemakers to German cookie bakers in Europe and US spirits producers in the United States, among many others.
The US imposed what could have amounted to 7.5 billion dollars in tariffs on European exports in 2019 after the World Trade Organisation (WTO) ruled that the EU had not complied with its rulings on subsidies for Airbus, which is based in France.
The UK negotiated a post-Brexit opt out from tariffs for single malt earlier this year but only for a limited period.
The UK government is expected to confirm on Wednesday that the tariffs will now be set aside for five years.
