Spirits industry responds to US lifting tariffs on Scotch

The US has officially returned to tariff-free trading for Scotch whisky in a move that has been met by much goodwill among the sector.

US President Donald Trump had originally imposed a 10% levy on Scotch whisky in April 2025 which had been due to increase earlier this year to 25% for single malts.

However, the decision to make sure Scotch whisky would be exempt from tariffs, which came into force as of today (24 July) was made by Trump following King Charles III’s state visit in April this year.

The Scottish government and the spirits industry has welcomed the lifting of tariffs on Scotch whisky exports to the US, which could also see Bourbon and American whiskey arriving in the UK tariff-free.

The tariff removal follows a challenging period for Scotch whisky exports. According to the Scotch Whisky Association (SWA), shipments to the US fell sharply after a 10% tariff was introduced in April 2025.

In fact, the SWA had noted that export volumes declined by 15% between May and December 2025, with the US still staying as the industry’s most valuable overseas market despite the downturn.

Win-win

Scotland’s first minister John Swinney said: “The result is a ‘zero-for-zero’ tariff regime that is a win for Scotland and a win for the United States. It benefits businesses and workers on both sides of the Atlantic and not just among whisky producers but also the businesses and communities that support the sector across Scotland. This is a good day for Scotland.”

Distilled Spirits Council president and CEO Chris Swonger said: “We thank President Trump for delivering on his commitment to remove the tariff on Scotch and other UK whiskies and for recognising the longstanding heritage, craftsmanship and distilling traditions that unite the United States and United Kingdom.”

‘Much-needed relief’

Swonger pointed out that “lifting this tariff provides much-needed relief for US hospitality businesses and demonstrates the benefits of fair, reciprocal trade” and added that “it is a meaningful step toward restoring the zero-for-zero tariff framework that fuelled growth, investment and job creation throughout the spirits sector for decades”.

Highlighting the positive impact this will have on the Scotch whisky industry, through improved access to American consumers while supporting businesses at home, Nodjame Fouad, CEO of Pernod Ricard’s aged spirits and Champagne division, said: “The return to tariff-free trade for Scotch whisky between the UK and US – the world’s most valuable Scotch whisky market – is very welcome news for our industry.

A long-standing trading relationship

Fouad explained: “This move will improve access for American consumers to iconic Scotch whiskies such as The Glenlivet, while supporting businesses at home, and strengthening the long-standing trading relationship between the UK and US spirits industries.”

Swonger said that the Distilled Spirits Council now looks forward to working with the administration “to build on this progress by extending tariff relief to other imported spirits, particularly those from the European Union, which would help reduce costs for restaurants, bars and other hospitality businesses across the country”.

Fouad also added: “We now hope to see further progress made towards the removal of tariffs affecting other spirits and wine categories – including Irish Whiskey, Champagne and Cognac – to deliver benefits for consumers, producers and hospitality businesses on both sides of the Atlantic.”

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