Trumps Tariffs Will Hit Whisky, Salmon Exports And More - Adapting and Diversifying Is Not New

6th April 2025

Trump's tariffs could have a particularly significant impact on Scotland compared to other parts of the UK.

This is largely due to Scotland's reliance on key exports like Scotch whisky and salmon, which are heavily targeted by these tariffs.

For example, the US is the largest export market for Scotch whisky, valued at £971 million annually, and salmon exports to the US are worth £225 million2.

The tariffs may lead to reduced demand for these products in the US, potentially affecting profit margins and jobs in Scotland. Smaller businesses, like independent whisky producers, could feel the pinch even more due to their reliance on stable, tariff-free trade3.

While the rest of the UK will also face challenges, Scotland's economy is particularly tied to these specific industries, making it more vulnerable to the tariffs' effects.

Diversify or Die
Scottish firms can explore alternative markets to offset the decline in sales to the U.S. caused by tariffs. For example, Scotch whisky exports already reach over 180 countries, with growing demand in markets like India, China, and Southeast Asia. Similarly, Scottish salmon producers could target European countries, where demand for premium seafood remains strong.

Diversifying export destinations and strengthening trade relationships with emerging markets can help mitigate the impact of U.S. tariffs. However, this requires investment in marketing, logistics, and compliance with local regulations.

While this latest bump puts a potential barrier for sales Scottish industries are resilient and are always looking for new markets and innovations to reduce costs and improve products. Overcoming problems is not new to Scotland.

What Can Be Done?
Identify emerging markets with growing demand for their products (e.g., India, Southeast Asia, or Latin America for Scotch whisky and salmon).

Build partnerships with local distributors and retailers in these regions.

Highlight the premium quality and heritage of Scottish products to appeal to high-income consumers and niche markets globally.

Invest in marketing campaigns that tell the story behind the products, emphasizing tradition, craftsmanship, and sustainability.

Leverage existing trade agreements (e.g., UK-Japan Comprehensive Economic Partnership) to access tariff-free or reduced-tariff trade opportunities.

Seek assistance from government initiatives, such as the UK Export Finance and Scottish Development International, for funding and market entry support.

Adapt products to suit local tastes and preferences in new markets while retaining their unique Scottish identity.

Introduce smaller, affordable packaging options to attract first-time buyers.