Business

Scotch whisky levy lifted as Trump imposes new wave of US tariffs

BBC Business · 2026-07-24

AI SUMMARY

• What happened: The Scottish government has welcomed the lifting of tariffs on Scotch whisky exports to the United States, following an agreement made by President Donald Trump after King Charles and Queen Camilla's state visit in April. • Why it matters: The removal of the 10% tariff, which was set to increase to 25%, is seen as a significant win for Scotland's whisky industry, which had faced losses of approximately £150 million, and is expected to benefit businesses and workers on both sides of the Atlantic. • What to watch next: Observers will be keen to see how this tariff change impacts the Scotch whisky market in the U.S. and whether it fosters further trade agreements between the U.S. and the UK, particularly in light of ongoing international tariff disputes.

Image source, Getty ImagesImage caption, Trump agreed to lift whisky tariffs after the King's state visit to the US in AprilPublished2 hours agoThe Scottish government has welcomed the lifting of tariffs on Scotch whisky exports to the United States.The move comes as President Donald Trump hit hundreds of international trading partners with a new wave of levies.The deal will also see US bourbon and casks arriving in the UK tariff-free. Scotland's first minister John Swinney said it was a "win on both sides of the Atlantic".Trump agreed that he would lift the tariffs after King Charles and Queen Camilla's state visit to the US in April.The US had originally imposed a 10% levy on Scotch whisky in April 2025. This had been due to increase earlier this year to 25% for single malts.Trump to remove whisky tariffs after King's visitPublished1 MayWhisky tariffs deal sparks political squabble over who claims creditPublished1 MayScotland exports more whisky to the US than any other country.The Scotch Whisky Association (SWA) said it had cost the industry about £150m, with the US market worth about £933m in 2025.Emily Weaver Rhodes, SWA deputy director, told BBC Radio Scotland that the removal of tariffs showed the positive relationship between the US and UK.She said: "There are really strong grounds and good evidence for why this is important not just for the UK, but for the US economy and that is delivering on the president's ambition to create jobs."I think on both sides of the Atlantic we are raising a dram to celebrate."The deal will also see Kentucky bourbon barrels – which are used to age Scotch whisky – come to the UK without tariffs.Image source, Getty ImagesImage caption, John Swinney said he raised the issue of tariffs during a meeting with Donald TrumpFirst Minister John Swinney said: "This 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."Trump's announcement in April that he would drop whisky tariffs had sparked a row over who was able to claim credit for changing his mind.Swinney said he had raised the issue with President Trump during a previous meeting in the Oval Office.But political opponents accused him of taking credit for the deal over King Charles.The first minister said it had come courtesy of the "remarkable contribution of the King" and a "Team Scotland" approach.He added: "We were able to partner with the bourbon industry in the United States, raise the issue with President Trump in the Oval Office, and get this issue on his agenda."Related topicsScotlandDonald TrumpTrump tariffsScotch whiskyScottish governmentJohn SwinneyKing Charles IIIMore on this storyUS hits dozens of trading partners with new wave of tariffsPublished2 hours ago

Source: BBC Business
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