Kate Forbes has said Scotland is "the powerhouse" behind the UK’s economy following the news of 0.7 per cent growth last quarter.
The Deputy First Minister was speaking at a distillery in Edinburgh to announce her government’s 6-point trade plan in aiding Scottish company exports to the United States.
Forbes said she is hugely optimistic about the future of the Scottish economy but in "no doubt about the challenges" from US import tariffs.
Her bespoke six-point plan identifies US states that offer the greatest potential to a Scottish exporter; supports producers at trade shows and distributor visits; added support for overseas trade missions; and increases funding for businesses exporting in technology, life sciences and hydrogen sectors.
Kate Forbes has said Scotland is "the powerhouse" behind the UK’s economy following the news of 0.7 per cent growth last quarter
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Visiting Summerhall Distillery in Edinburgh as Cabinet Secretary for the Economy, Forbes said she believes "the greatest potential is here in Scotland, driven by brilliant businesses that are pursuing the opportunities they see ahead."
Speaking on industry reaction to global market shifts and trade across the Atlantic, she said it was clear that "tariffs and other global uncertainties" have rocked Scottish businesses abroad.
She said: "Businesses that have pivoted, have identified new opportunities and are pursuing them with support from the Scottish Government and Scottish Development International are able to grow in the face of those global headwinds."
She described the Scottish Government’s work with Indian trade delegations on both sides of the world as important steps to secure the Indian Trade deal that could be worth £1billion to the Scottish whisky industry over the next five years.
Despite the "uncertainties" around US import tariffs, the Scotch Whisky Association (SWA) said the Indian deal could be enough to offset a decrease in demand from the United States.
India is Scotch whisky's largest export destination by volume - more than 192 million bottles were exported there in 2024 - and exports there have increased by 200 per cent since 2015.
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Despite India’s increasing appetite for whisky, the US remains Scotland’s biggest export market after the EU and Forbes admits US import tariffs present "challenges" to the whisky industry but the Scottish Government’s trade plan will attempt to assist producers looking to gain a foothold in the US.
Summerhall distillery - famous for its Pickering’s gin - has felt the benefit of Scottish Government support in recent years.
The gin’s co-founder Marcus Pickering said the die has not been cast.
"The tariffs and trade deals being done are all going to happen," he said. "It’s just how they happen and when they happen.
"Whisky is renowned for having its highs and lows, it’s low at the moment but it will come back up - that’s just what whisky does.
"But globally people will still want those products that Scotland can provide and it’s just how we navigate our way through to getting those products to those people.
Kate Forbes said she is hugely optimistic about the future of the Scottish economy but in "no doubt about the challenges" from US import tariffs
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"Normally people on both sides of the water people are prepared to make changes to allow for something to happen.”
The Scotch Whisky Association has hailed the Indian trade deal as“transformational”and stated the agreement would be“a big boost to two major global economies during turbulent times."
Mark Kent, Chief Executive of SWA said: "The reduction of the current 150 per cent tariff on Scotch Whisky will be transformational for the industry.
"The deal has the potential to increase Scotch Whisky exports to India by £1billion over the next five years and create 1200 jobs across the UK."
Kate Forbes said she is "determined to protect and grow Scotland’s business interests around the world", but both the Scottish Government and the SWA will need to put in the work if Scotland hopes to avoid a repeat of the whisky levy from President Trump’s last administration that wiped £600million from whisky exports to the US between October 2019 and March 2021.
The five-year suspension of that levy times out in June 2026 and as despite a SWA delegation meeting with members of Congress and DISCUS last year, there remains no plan in place with the new Trump administration to lift it before next summer.
