THE UK is to drop tariffs on some US products in a move hoped to end crippling charges for overseas whisky exports.

Liz Truss, UK Government secretary of state for International Trade, has announced the voluntary removal of levies introduced as a result of a dispute between the EU and US over support for aircraft companies Boeing and Airbus.

Scottish Secretary Alister Jack, said the first step in de-escalating the trade tensions was a sign that the government was “determined to secure the removal of tariffs that harm Scottish businesses and consumers. “

Along with cashmere, Scottish whisky has been subject to a 20 per cent tariff to the US since 2018 - a move which has cost the industry millions, with fears growing about the impact it would have on Scotland's rural communities and distilleries. 

The whisky charges came after the EU imposed levies on US products when it emerged aerospace firm Boeing had been unfairly subsidised by America.

Donald Trump imposed retaliatory tariffs on the EU for its subsidy of Boeing competitor Airbus.

Now the UK Government says it is taking a new approach to the situation by suspending the tariffs from January, in the hope it will open up a dialogue with the US about ending the whisky tariffs, among others.

However in a simultaneous announcement about a separate dispute Ms Truss said she was also “defending the steel industry” by keeping tariffs on other US products from Janaury 1.

This is a result of the US’s decision to impose protectionist import taxes on EU steel and aluminium products.

Ms Truss said: “As an independent trading nation once again, we finally have the ability to shape these tariffs to our interests and our economy, and to stand up for UK business.

“Ultimately, we want to de-escalate the conflict and come to a negotiated settlement so we can deepen our trading relationship with the US and draw a line under all this.”

Secretary of State for Scotland Mr Jack added: “We will continue to defend these industries, petitioning the highest levels of the US administration to remove tariffs.

“Whisky is a cornerstone of Scotland’s economy, employing around 11,000 people, many in rural areas.

“It is one of our greatest exporting success stories, worth more than $1.5 billion last year in the US alone.”