Whiskey rivals Scotch and bourbon are setting aside their competition as new US tariffs threaten to shake up a centuries-old partnership, reports the New York Times. Both US whiskey producers and their Scottish counterparts agree tariffs on Scotch whisky imported into the US are bad for business on both sides of the Atlantic. Chris Swonger, who heads the Distilled Spirits Council of the United States, has taken his case directly to policymakers—including during President Trump's recent visit to Scotland—warning that tariffs disrupt an industry that's deeply interconnected. The two sides share supply chains and even barrels—used Kentucky bourbon casks are a staple for aging Scotch, a trade worth about $300 million annually to US distilleries.
Despite a recent US-UK trade agreement lowering tariffs on some British goods, Scotch remains hit by a 10% levy. The industry, already strained by shifting consumer habits and economic uncertainty, claims these tariffs could cost the US some 3,300 jobs and $300 million in revenue, rippling down from distillers to bartenders and retailers. At a recent meeting at a Scottish distillery, Swonger and Scotch Whisky Association chief Mark Kent jointly pushed for tariff relief, citing their industries as a model for reciprocal trade. Scottish leaders, encouraged by ongoing negotiations, believe there's still a chance to secure an exemption for Scotch, perhaps to be revealed during Trump's state visit to Britain this week. The UK government is pushing the issue as part of wider trade negotiations, per the BBC.