The UK government has been warned it cannot guarantee its strategy for handling US tariffs will succeed, as a fresh threat of a 10% levy on British goods emerges from Washington. The escalation is tied to a diplomatic row over the future of Greenland.
Whisky Industry Braces for Impact
Scottish Secretary Douglas Alexander issued the stark assessment, highlighting the acute risk to Scotland's vital whisky sector. Speaking to BBC Scotland's Breakfast show, Alexander stated he understood that "jobs and livelihoods in Scotland" were on the line due to the new trade threat.
He sought to reassure the Scotch Whisky Association (SWA), emphasising the industry was "very high up our agenda." The Secretary pointed to the UK's historic achievement as the first country to secure a trade deal with the United States, but acknowledged the ongoing challenge. Scotch whisky's largest export market by value is the United States, making it particularly vulnerable.
The SWA previously estimated that existing 10% tariffs on UK goods were costing the sector approximately £4 million per week last year. The new threat, issued by US President Donald Trump via social media within the last 40 hours, warns of an additional 10% tariff on the UK and other NATO allies.
Arctic Security and a Multilateral Stance
The tariff threat is linked to President Trump's renewed ambitions to acquire Greenland, against which the UK has taken a stand. In a Truth Social post on Tuesday morning, Trump labelled a recent UK deal concerning the Chagos Islands as an "act of great stupidity," citing it as a national security reason for acquiring Greenland.
Douglas Alexander countered this, noting that during a Prime Ministerial visit to the White House, President Trump and his administration had welcomed the Chagos Islands deal. Alexander stressed that the agreement guarantees the islands' use for the defence of the UK, US, and Western allies.
Outlining the UK's position, Alexander made three key points:
- Greenland's future is a matter for the Greenlanders and the Danes.
- The use of tariffs to pressure allies is simply wrong.
- Arctic security is, by its nature, a multilateral issue.
He explained the strategic importance, noting that the Russian northern fleet accesses the North Atlantic off the coast of Scotland via the Arctic, giving NATO a shared interest in Greenland's defence and security.
"No Guarantees" of Success
Despite diplomatic efforts, including First Minister John Swinney's trade talks with US officials in September aimed at improving the whisky tariff deal, Alexander was candid about the prospects. He stated there were "no guarantees" the Government's approach would prevail.
"I need to be open, there are no guarantees that our approach will prevail," Alexander said, "but there will be earnest, hard work, there will be a track record of success, and there will be a determination to advance the British national interest."
The situation leaves the UK's critical export industries, particularly the iconic Scotch whisky sector, in a state of anxious uncertainty as high-stakes international diplomacy continues.
