Scotch whisky distillers toast end to high U.S. tariffs on single malts

Scotch whisky makers breathed a sigh of relief Thursday after the United States agreed to suspend tariffs on one of Scotland's main exports following the resolution of a long-standing trade row between the U.S. and the European Union over subsidies to aircraft companies Boeing and Airbus.

President Donald Trump slapped a 25% tariff on single-malt Scotch whisky in 2019 as part of the trade dispute over aerospace subsidies. While the U.K. no longer is an EU member, it belonged to the bloc when the tariffs were imposed and is a major participant in Airbus. Earlier this week, the U.S. and the EU reached an agreement to end their dispute. The breakthrough paved the way for a five-year suspension of tariffs both sides had placed on an array of products that have nothing to do with aircraft, including olive oil and cheese, as well as whisky. The Scotch Whisky Association estimated the tariffs caused more than $850 million worth of lost exports to the U.S..