US Import Tariffs

First Minister’s Question Time – in the Scottish Parliament at on 23 January 2025.

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Photo of Christine Grahame Christine Grahame Scottish National Party

To ask the First Minister, in light of the inauguration of Donald Trump as US President, and the reported prospect of import tariffs, what sectors of Scottish business it anticipates may be most affected. (S6F-03735)

Photo of John Swinney John Swinney Scottish National Party

I am alert to the dangers of tariffs and to the damage that they can cause, and we are closely engaging with the fact that President Trump has asked the US Secretary of Commerce to investigate the US’s annual trade deficit and its economic and security implications.

It is important to note that no new tariffs have been established. We do not believe that tariffs are the answer, and we urge all parties with an interest in the export of Scottish goods to come together to work towards a mutually beneficial resolution.

Photo of Christine Grahame Christine Grahame Scottish National Party

The First Minister must, of course, be constrained and diplomatic and work in the interest of Scottish businesses. I understand that, but I am not so constrained. I find Donald Trump to be creepy and see his policies potentially wrecking not only the world economy but the Scottish economy.

Does the First Minister recall that, in 2019, phase 1 of Trumponomics involved using tariffs against the European Union, which impacted Scotland when a 25 per cent tariff on each bottle of malt whisky cost the industry £600 million in just 18 months? What damage does the First Minister worry would be brought to the whisky industry and others if tariffs were to continue or to be reimposed?

Photo of John Swinney John Swinney Scottish National Party

It would be a brave individual who suggested that Christine Grahame should be diplomatic on any day of the week, and I certainly do not intend to go into that particular abyss.

Christine Grahame raises an important issue because, if there were to be tariffs of the type that she set out, that would be very damaging to key sectors of the Scottish economy, of which probably the strongest example would be the Scotch whisky industry. That is why, although I entirely understand that people will have very strong views about President Trump, it is my duty as First Minister of Scotland to ensure that I take every step that I can to protect the economic and national interests of Scotland. That is why, should that situation arise, I will engage emphatically to protect the interests of Scotland and to engage with the President of the United States if it is necessary to do so.

I hope that we do not end up in that situation, because Scotland and the United States enjoy and experience a strong and long-lasting relationship, and I want that to continue to thrive in the years to come.

Photo of Murdo Fraser Murdo Fraser Conservative

I remind members of my entry in the register of members’ interests in relation to my connection with the Scotch Whisky Association.

As Christine Grahame has fairly said, tariffs on Scotch whisky during Donald Trump’s first presidency were calculated to have cost the industry £600 million, and we cannot run any risk of that damage being repeated. Does the First Minister therefore agree that all politicians here should recognise the need, in the interests of our economy, to work constructively with the new US regime, whatever our view of Donald Trump might be, and that, in the words of the new president of the Scottish Chambers of Commerce, some need to “haud their wheesht” when it comes to criticising the President?

Photo of John Swinney John Swinney Scottish National Party

If Murdo Fraser will forgive me, I will just be accountable for my conduct and contribution. People can be assured that this First Minister will be focused on the issues that matter to the people of Scotland. We have talked about the national health service already in this session. The issue of the NHS matters to me, and the Scottish economy and its prospects, including those of the Scotch whisky industry, all matter to me, into the bargain. I will take forward my responsibilities to make sure that Scotland’s economic interests are protected. Should that come from engagement and dialogue with the President of the United States, notwithstanding people’s views about the President, I will do exactly that, because it is my duty as First Minister to do so.

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