Anne Robinson, owner of Scottish Gourmet USA in North Carolina, plans to increase prices for her imported Scottish products, including shortbread, due in part to a new 10% tariff on imports from Scotland. She notes that the appreciation of the British pound against the U.S. dollar and rising costs for healthcare and raw materials are also contributing to this decision.
Several factors are influencing the price of goods, including soaring butter costs, which have already led to an increase of at least $1 per box of cookies. While some consumers may still prefer imported goods like Scottish shortbread, there are concerns that higher prices might drive them to cheaper American alternatives, such as Lorna Doone cookies.
The broader implications of these tariffs, initially introduced by the Trump administration, could affect jobs related to both U.S. and Scottish markets. For instance, Walker’s shortbread in Aberlour employs around 1,700 people, and an increase in tariffs may jeopardize those jobs while potentially benefiting U.S.-based manufacturers like Mondelez.
Larger companies in other sectors are also feeling the impact of tariffs, with automotive giants such as Toyota and General Motors anticipating significant financial hits due to increased import costs. Wholesale prices in the U.S. have recently risen, indicating that importers may soon begin passing on costs to consumers, raising concerns about inflation.
Internationally, countries affected by U.S. tariffs are exploring alternate trade partnerships. Scotland’s salmon exporters face a 10% tariff, while Norwegian products incur a 15% tariff, creating a market distortion. Analysts suggest that as alternative markets are sought, the benefits to U.S. consumers might be offset by the increased cost of domestically produced goods due to a lack of competition.
The situation remains fluid, and with various international negotiations ongoing, the long-term effects of these tariffs are still uncertain.
Source: https://www.bbc.com/news/articles/c4g0jnw7v8jo?at_medium=RSS&at_campaign=rss