Donald Trump’s 10% tariff on all exports from the UK will “undermine” Scotland’s growth, John Swinney has warned.

Speaking to The Herald ahead of a visit to the US for the annual Tartan Week celebrations, the First Minister said it was “not good news” for key Scottish industries.

He also said he was not confident that the UK Government would be able to secure a trade deal with the United States.

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The President announced a raft of sweeping tariffs on all imports on Wednesday night.

There was some relief in No 10 that the UK had escaped the worst of the levies, only facing the "baseline" tariff announced for all trading partners by the President.

Dozens of other countries will face this and so-called “reciprocal” tariffs, while all imports from the EU will be subject to a 20% charge.

A No 10 source told Sky News the lower rate vindicated Sir Keir Starmer's charm offensive with the Republican.

Asked if he had been bracing for worse, Mr Swinney said: “It's bad enough. And therefore, the fact that we're going to very clearly experience a further barrier to trade with the United States is not good news.

“So whatever level it's at, it's not good news because barriers cost money in whatever form they take. We do a lot to try to avoid barriers, to encourage and motivate trade.

“And the idea that somehow this has been a negotiating triumph to avoid even worse is—I don't think it's borne out by the fact that we've now got a very damaging outcome.”

The First Minister said calculations were “underway” on what impact the tariffs would have on Scotland.

“At this stage, I can't put a precise number on it, but it will erode GDP. And you cannot take a hit of that type and expect the kind of economic growth I want to see—growth that I'm positioning every other part of the government's agenda to enable—without expecting a negative consequence.

“Now, how bad that is will depend on the detail of what’s involved and how it impacts different sectors. But I think we can safely say it will undermine GDP.”

Mr Swinney said the Scottish Government needed “growth in the economy to deliver growth in the public finances, and the two are inextricably linked.”

The First Minister said he had no scheduled meeting with anyone from Donald Trump’s administration while in New York and was not expecting one to take place.

Mr Swinney — who is due to take part in the Tartan Day parade on Sunday — will meet with energy private equity firm Quantum Capital, speak at a Scottish Chambers of Commerce reception, and host an event with the Lord Mayor of London for the financial services sector.

Meanwhile, Ian Murray, the Scottish Secretary in the UK Government, is to meet Mr Trump’s special envoy to the UK, Mark Burnett.

He is also meeting State Department officials and Congressman Steve Cohen, a senior figure in the Scottish American congressional caucus.

Asked why he had not sought a meeting with anyone from Mr Trump’s administration and why he was not making the relatively short trip to Washington DC while in New York, Mr Swinney told PA it was the UK Government’s responsibility.

“I’m not going to get in the road of those negotiations.

“It’s their responsibility. They’ve got to fix it. What I can do is I can use my time to attract investment directly into Scotland and that’s what I’m going to do.” 

 

Mr Trump’s tariffs were also raised during First Minister’s Questions, with Scottish Conservative leader Russell Findlay saying he feared the charges would “put Scottish jobs at risk, stop businesses from growing, and slow economic growth.”

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Exports from Scotland to the US are worth around £4 billion a year, Mr Findlay noted, claiming President Trump’s tariffs will “cause significant harm to many of our industries, including food and drink, textiles, engineering, and pharmaceuticals".

Mr Swinney stated: “The imposition of tariffs is not good news.
“It will be damaging for economic activity not just in Scotland and the United Kingdom, but across the world.”

He added that the Scottish Government would now “work with the business community to strengthen the economic opportunities and prospects for Scotland.”

But he also said Holyrood ministers would engage with the UK Government – which is responsible for international trade.