Live revision! Join us for our free exam revision livestreams Watch now

In the News

UK Scotch whisky exports suffer due to US tariffs

Ollie Gardner

3rd February 2021

This article in the Guardian explores how retaliatory import tariffs imposed by the US, as a result of EU support given to Airbus, has resulted in £500mn in lost Scotch whisky exports.

Since the tariffs were introduced, the Scotch Whisky Association (SWA) say exports to the US have fallen by 35%. This has not only impacted UK producers due to lower quantity demanded but also leads to higher prices for US consumers of Scotch whisky. The extent of the tariff's impact will depend on the price elasticity of demand for Scotch whisky and how much of the tax incidence can be passed onto consumers.

This story, combined with the disruption caused to UK trade by the Brexit agreement, seems to indicate an increase in the prevalence of protectionist policies in recent times - potentially eroding some of the benefits that free trade provides.

Ollie Gardner

Ollie is a new economics teacher at an academically selective school having previously worked in the healthcare technology industry.

© 2002-2024 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.