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DONALD TRUMP’S punitive tariffs on a number of British exports were labelled an act of “economic vandalism” today, as well as a double blow for hundreds of British firms and thousands of jobs.
The US president has refused to remove high tariffs of 25 per cent on many goods, while withdrawing tariffs on shortbread and allowing a temporary reprieve for gin, salmon and blended whisky.
The US had imposed tariffs on more than 100 items last year in a spat over EU subsidies for Dutch company Airbus. The World Trade Organisation (WTO) ruled that state aid for Airbus to launch its A380 and A350 jets gave an illegal advantage over rival Boeing and authorised US retaliation.
As a result of the WTO ruling the US slapped tariffs on around £6 billion worth of EU goods and services.
This saw US imports of some British goods plummet, with Scotch whisky imports dropping by a third.
The Scotch Whisky Association attacked the British government for its “inexplicably slow” action against the hefty tariffs, adding that ministers were instead prioritising post-Brexit trade talks with the US.
The US is required by law to review tariffs periodically. On Wednesday it announced minor changes, for example removing sweet biscuits like British shortbread and adding jams from France and Germany.
Shadow international trade secretary Emily Thornberry said Labour welcomed the withdrawals and reprieves but that maintaining “punitive” tariffs on items such as single malt whisky, knitwear, and cheese was “disappointing.”
Her comments came a day after it was revealed by the Office of National Statistics that Britain has officially entered its worst recession in 65 years.
Ms Thornberry added: “Coming on the back of this week’s disastrous growth figures, the maintenance of those tariffs represents a double blow for hundreds of vital British businesses, especially in Scotland, and the tens of thousands of workers they employ.
“Whatever the rights and wrongs of the EU-US dispute, it has nothing to do with the distilleries, farmers, food producers and clothes makers affected by these tariffs and — at this time of all times — it is an act of economic vandalism for Donald Trump to continue targeting their livelihoods in this way.
“The government must provide urgent support to all the firms and workers affected, and redouble its efforts to get these tariffs removed.”
International Trade Secretary Liz Truss said that she would be “stepping up talks with the US to remove [the tariffs] as soon as possible.”