Whisky war: Scottish government pleads with Trump not to hit distilleries with tariffs

Scotland is urging President-elect Donald Trump behind the scenes to spare their whisky exports from his tariffs, The Guardian reported on Wednesday.

Trump has vowed to impose massive new tariffs on foreign goods as soon as he enters office, and has specifically singled out Mexico, Canada, and China — but Scotland appears concerned about how it could affect its economy.

The leader of Scotland's devolved government, John Swinney, "lobbied Trump about whisky’s significant economic and cultural status during a 'warm and friendly' 20-minute long telephone call the pair had on Monday," said the report.

In response, "The incoming president repeatedly cited his close family and business ties to Scotland: Trump owns two heavily indebted Scottish golf courses, and his mother was born on the Hebridean island of Lewis, a connection the president-elect repeatedly references."

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The American market is worth about $1 billion a year to the Scottish whisky industry, The Guardian reported.

While Swinney, who backed Vice President Kamala Harris, did not explicitly mention the tariffs, he heavily hinted at Trump that it was important they not extend to whisky, the report continued, with one Scottish government official saying, “They discussed the social, cultural, and economic ties between Scotland and the United States, including the importance of the U.S. market for Scottish exports. The first minister said he looked forward to the two nations continuing to work together.”

Economists have sounded alarms that Trump's tariff plans could stand to sharply raise the price of consumer goods and energy. Trump, for his part, appears not to understand how tariffs actually work, as he has insisted other countries will pay fees for the right to export their goods, when in reality American consumers will be paying the fees.