President Donald Trump’s recent imposition of tariffs has sent shockwaves through Scotland’s export-dependent industries. While Scotch whisky has garnered significant attention, other sectors such as salmon, textiles, and engineering are also grappling with the fallout from the 10% tariff on UK exports to the U.S..
Meanwhile, the UK is readying a list of US products it could hit with retaliatory tariffs if a better deal can’t be struck before May 1.
The BBC has reported UK business secretary Jonathan Reynolds is liaising with firms across the country about the impact the 10% tariffs being imposed on nearly all UK exports to the US will have.
He is also canvassing opinion on which products should be on a list of US products to potentially impose levies on.
If UK negotiators can’t agree a deal to reduce the 10% tariff by May 1, Reynolds told MPs the government could impose retaliatory tariffs on US imports.
Possible effects on key industries in Scotland
- Salmon Industry: The U.S. is Scotland’s second-largest market for salmon exports, valued at £225 million in 2024. Tavish Scott, CEO of Salmon Scotland, expressed concern but remained hopeful that American consumers would continue to purchase Scottish salmon despite potential price increases. However, businesses like Manhattan-based fish wholesalers have warned that costs will inevitably be passed on to consumers, creating uncertainty for producers reliant on global markets.
- Textiles and Engineering: These sectors are also expected to face challenges. John Swinney, Scotland’s First Minister, highlighted the potential damage to industries like textiles and engineering during a parliamentary session. He assured that the Scottish Government would collaborate with Westminster to mitigate the impact.
- Artisan Food and Drink Producers: Smaller businesses such as craft bakers and gin distilleries are particularly vulnerable. Stuart Ingram, owner of House of Elrick Gin, noted that while the 10% tariff is currently manageable, any increase could severely impact profitability. Many producers fear reduced demand in the U.S. due to higher prices for British imports.
In the Scottish Government, Deputy First Minister Kate Forbes criticised the tariffs as “unilateral measures” that harm trade relations and called for collaborative solutions. She emphasised the importance of maintaining strong economic ties with the U.S.
UK Prime Minister Sir Keir Starmer has also acknowledged the economic hit but expressed hope for avoiding a trade war. He has urged negotiations to resolve trade tensions.
Scottish Conservative leader Russell Findlay said: “The new Trump tariffs will put Scottish jobs at risk, they will stop businesses from growing and they will slow economic growth.”
Exports from Scotland to the US are worth some £4bn a year, Findlay noted, claiming Trump’s tariffs will “cause significant harm to many of our industries including food and drink, textiles, engineering, and pharmaceuticals”.
First Minister John Swinney stated: “The imposition of tariffs is not good news, it will be damaging for economic activity, not just in Scotland and the United Kingdom, but across the world.”
Industry Leaders Tavish Scott (Salmon Scotland) and Anthony Wills (Kilchoman Distillery) have both stressed the need for stable trade relationships. Wills shared concerns about absorbing costs to maintain retail prices in the competitive U.S. market.
Summary of Tariff Levels
| Country/Region | Tariff Rate (%) |
|---|---|
| United Kingdom | 10 |
| European Union | 20 |
| China | 54 |
| Vietnam | 46 |
| Thailand | 36 |
| Japan | 24 |
| Cambodia | 49 |
| South Africa | 30 |
| Taiwan | 32 |
Countries like Canada and Mexico are exempt from these new tariffs due to existing agreements under USMCA but remain subject to earlier levies.
Economic Outlook
The Fraser of Allander Institute has warned that these tariffs could exacerbate economic uncertainty in Scotland, potentially leading to job losses and reduced profits for exporters. Businesses now face a dual challenge of adapting to higher costs while maintaining competitiveness in a key export market
Meanwhile, a BDO survey has shown that 34% of Scottish businesses will be significantly affected by the US Government tariffs.
While Scotch whisky remains a focal point of concern, other Scottish industries are equally at risk from Trump’s tariffs. Political leaders and industry representatives continue to advocate for pragmatic solutions to prevent long-term damage to Scotland’s economy.
