The United Kingdom said it will suspend retaliatory tariffs resulting from the Boeing dispute, hoping the action will bring the U.S. to a reasonable settlement and show that the UK is serious about reaching a negotiated settlement.
At the same time, the UK government said it would “roll over” tariffs in response to the unjustified ‘Section 232’ tariffs imposed by the U.S. on aluminum and steel imports. The tariffs on steel and alumnim will be “shaped to UK interests and tailored to the UK economy, based on evidence and input from key stakeholders.”
The UK becomes independent with regard to trade on Jan. 1. “As an independent trading nation once again, we finally have the ability to shape these tariffs to our interests and our economy, and to stand up for UK business,” said Liz Truss, UK International Trade Secretary.
“Ultimately, we want to de-escalate the conflict and come to a negotiated settlement so we can deepen our trading relationship with the U.S. and draw a line under all this. We are protecting our steel industry against illegal and unfair tariffs – and will continue to do so – but are also showing the US we are serious about ending a dispute that benefits neither country,” Truss added.
The announcement was applauded by the Distilled Spirits Council of the U.S. (DISCUS), which called it “a hopeful sign that a resolution to the debilitating tariffs on U.S. & UK spirits may be in reach” and urged the U.S. and UK to build on this positive momentum by eliminating the UK’s retaliatory tariff on American Whiskey and U.S. tariffs on Single Malt Scotch, Single Malt Irish Whiskey from Northern Ireland and liqueurs and cordials.
Since the EU’s 25 percent retaliatory tariff went into effect in June 2018, American Whiskey exports to the UK, our second largest American Whiskey export market, have tumbled by 55%, DISCUS said.