If you attend one of the hundreds of annual Scottish festivals that are held annually in the US, chances are you will come across a hand-crafted Scotcrest product. For decades, the firm has helped the stateside Scottish diaspora celebrate their heritage, producing best-selling items such as wood-carved clan plaques. It is ironic, therefore, that the Trump administration’s imposition of a 10 per cent tariff on nearly all UK goods being brought into the US was imposed by a president whose own mother hails from these shores; already, the levy is having an adverse impact on Scotcrest, a family-run firm based in Inverclyde. “One of my very good customers in North America buys lots of our products to sell at Highland games around the US, because they’re hand-made in Scotland and have provenance, but even back in January, they couldn’t place any orders because they were waiting for the Trump tariffs to come in,” explained Neill Hunter, managing director of the Port Glasgow company. “Now that they’ve been introduced, my customers are stalling off from ordering, because they just don’t know what to do. That directly impacts us, and our North American sales last month and this month have been way down for that reason.” Like many other small business owners in Scotland, Mr Hunter is unclear as to the full impact of the tariffs, but for a firm that relies on the US for around 30 per cent of its trade customers, the uncertainty is damaging in and of itself. Even so, he has hopes that the higher tariffs imposed on China - prodigious producers of what might disparagingly be called ‘tartan tat’ - could ultimately end up benefiting his business, and believes a UK-US trade deal could ultimately mitigate the harm caused by the tariffs. “I think we’ll probably get a trade deal that comes down to zero, we’re not a threat to the US,” Mr Hunter reasoned. Talks on such a deal are well under way, but it could be weeks, if not months, before they are concluded. In the meantime, the apprehension is being felt far and wide across Scottish industries. The focus, so far, has understandably fallen on Scotch whisky and salmon, given their economic pull. But as the experience of Mr Hunter and Scotcrest makes clear, there is a host of other industries and smaller firms who contribute to the £3.98 billion Scotland to US export market, and find themselves on unsure ground thanks to Mr Trump’s aggressive trade policies. According to the latest regional data compiled by HM Revenue & Customs, for example, more than £451m in power generating machinery was exported to the US last year, with £100m inorganic chemicals sent to the US. The textile yarn and fabrics sector, meanwhile exported £29.3m worth of goods to the US. One prominent Scottish knitwear firm, Lochaven International, was hit by the previous 25 per cent tariffs introduced during Mr Trump’s first term in office. By contrast, the new tariff has brought about a degree of relief. “It could be worse, and we’ll see how it goes, but I don’t think 10 per cent should have a huge impact on our company,” said Colin Leishman, managing director of the company, based in Stewarton, East Ayrshire. “If the tariff was higher, getting into the 20 and 25 per cent range, it would have definitely had an impact, but we will have to wait and see.” The US market is big business for Lochaven, and the firm has gained a global profile thanks in large part for supplying the school cardigans, jumpers and tank tops worn by the cast of the Harry Potter movies; to this day, it holds a lucrative global licence agreement with Warner Bros to sell replica co-branded garments as official Harry Potter merchandise. Mr Leishman said that the UK was in a better place than the EU, which is facing 20 per cent tariffs, and other countries around the world, and explained that Lochaven remained in talks about launching new products into the US market, where he had confidence the quality and heritage of the brand would offset the additional costs. “We don’t want to be competing at the low end, it’s not our market,” he added. Not everyone, however, will be so confident about withstanding the economic shock dealt by the Trump White House. Dr Liz Cameron, chief executive of the Scottish Chambers of Commerce (SCC), said that unless Scottish businesses had signed fixed price contracts with US buyers, the newly imposed tariffs would add to their costs. Subscribe today to the Scotsman’s daily newsletter “Many exporters usually build in a margin to cover exchange rate fluctuations, but that would depend on when they signed any contracts,” she explained. “Those new to exporting to the US, will now need to ensure that the margins cover the 10 per cent tariff.” She said there would be concern among businesses about to sign major export deals who had not built in the tariff hikes, warning that they may have to withdraw, given the contracts are deemed no longer commercially viable, a decision that could have a deleterious effect on jobs. To coincide with the annual Tartan Week celebrations in New York, an SCC delegation signed a landmark partnership agreement with the Greater New York Chamber of Commerce on Friday, strengthening transatlantic trade. It is an indication above all else that business ties with the US remain crucial. Indeed, asked how the Trump administration’s stance would influence the US export strategy of Scottish businesses going forward, Dr Cameron said that the US would remain a “major exporting opportunity,” provided the price is right. “Businesses will rethink and reposition,” she reasoned. “The US remains a major trading partner for Scottish business. They will focus now on whether they can increase volumes, branding positioning, and trade diversification - in other words, there could be other markets to target as a contingency plan for the future.”