US lifts Scotch whisky tariffs in bilateral trade deal with UK
The removal of US levies on Scotch whisky and UK tariffs on American bourbon secures a vital market for Scottish distillers while highlighting the fragility of broader transatlantic trade relations.
The United States has lifted its tariffs on Scotch whisky exports, securing a critical reprieve for Scotland’s most valuable international market. The concession arrives even as President Donald Trump imposes a new wave of levies on hundreds of other global trading partners.
Under the agreement, Kentucky bourbon and the casks used to age Scotch will also enter the United Kingdom tariff-free. Scotland’s First Minister John Swinney described the arrangement as "a win on both sides of the Atlantic" that benefits workers and businesses.
The financial stakes for the Scottish economy are substantial. The Scotch Whisky Association (SWA) estimates the previous US tariffs cost the industry approximately £150m, threatening a market that was worth about £933m in 2025.
Washington originally imposed a 10 per cent levy on Scotch whisky in April 2025. That rate had been scheduled to increase to 25 per cent for single malts earlier this year before the reversal.
Industry leaders framed the policy shift as a demonstration of constructive transatlantic cooperation. SWA deputy director Emily Weaver Rhodes noted that the move supports the US president’s ambition to create jobs while protecting UK interests.
"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," Weaver Rhodes said. She added: "I think on both sides of the Atlantic we are raising a dram to celebrate."
The tariff removal follows a state visit to the US by King Charles and Queen Camilla in April, which reportedly influenced the president’s decision. However, the announcement initially sparked domestic political friction over who deserved credit for the diplomatic breakthrough.
Swinney faced accusations from political opponents that he was appropriating credit belonging to the monarch. He defended his involvement, attributing the outcome to the "remarkable contribution of the King" alongside a "Team Scotland" approach.
"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," Swinney stated.
For investors and distillers, the tariff removal eliminates a major layer of uncertainty that had been weighing on export revenues. Yet, the exemption stands in stark contrast to the broader protectionist environment, leaving other European exporters vulnerable to the administration’s new wave of trade barriers.
