Donald Trump's victory in US election could hit Scottish jobs, warns John Swinney
Donald Trump’s victory in the US election could hit Scottish jobs, the First Minister has warned.
John Swinney said proposed tariffs on whisky and other products posed a “very real” threat.
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Hide AdMr Trump has spoken of imposing tariffs of up to 20 per cent on all imports. A 25 per cent tariff on Scotch whisky was introduced in 2019 and reportedly cost the industry £600 million over the 18 months it was in place.
This was suspended for five years in 2021, but is due to come back into force in June next year.
Mr Swinney said: “There are real dangers that there could be the application of tariffs, and that would be very damaging to the Scotch whisky industry. We’re going through a period of respite from those tariffs just now, but there is the possibility of that in the future.”
Asked if a Trump presidency could hit jobs in Scotland, he said: "It potentially could as a consequence of tariffs being applied not just on Scottish whisky but on other products.
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Hide Ad"We have to be aware that tariffs can be very damaging to domestic employment within Scotland because we are an exporting country, not just in relation to whisky.
“Whisky is a seminal export product from Scotland, but we have other strengths in food and drink and manufacturing, and in various innovative technologies, where the existence of tariffs could be a significant factor for the health and the prosperity of employment in Scotland.”
Mr Swinney, who was speaking to journalists during a visit to the Scotch Whisky Experience in Edinburgh, said the Scottish Government will engage “very directly” with the US over the issue.
Elsewhere, he said he would welcome Mr Trump to Scotland if he decided to visit.
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Hide Ad“That’s my duty as First Minister,” he said. “I’ve got to do that to make sure that Scotland’s approach is appropriate and that we are asserting and protecting our own interests.”
Ahead of the US election, Mr Swinney backed Kamala Harris, Mr Trump’s Democratic rival. Scottish Tory leader Russell Findlay described this as a “cack-handed intervention”.
But the First Minister said: “You have to answer questions that are put to you about what your views are. I’ve set out my view about the election. But today, I recognise democracy has taken its course and I congratulate President Trump on his election.”
Asked if he believed the US would come to regret a second Trump presidency, Mr Swinney said: “There’s a lot of water to go under the bridge. We will have to wait and see what emerges.
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Hide Ad“But I think the nature of some the language and the expressions about other people - I understand why people are concerned this morning, and we’ll just have to wait and see where it goes.”
Earlier this year, the Scotch Whisky Association said the tariffs between 2019 and 2021, which were imposed as part of a trade dispute between the US and EU countries over aerospace subsidies, were “hugely damaging” to the industry.
It said: “Over £1m a day in lost exports was a high price for the Scotch whisky industry to pay for an unrelated aerospace dispute. A re-run of these damaging tariffs must be avoided.”
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