Trump Is Lifting the Tariff on Imports of Scotch Whisky
The past year has presented many challenges to the whiskey industry, and one of the main factors that have been making distilleries and their parent companies nervous are tariffs. About a year ago, President Trump instituted a 10 percent tariff on goods imported from the U.K, which included scotch whisky. That was a significant blow to an already struggling industry, and one that made one of its most important markets—America—that much more expensive for consumers. But yesterday, after meeting with King Charles III during his state visit, Trump announced that he was lifting this tariff, much to the relief of scotch brands and distilleries.
Trump being Trump, he announced the news in a Truth Social post. “In honor of the King and Queen of the United Kingdom, who have just left the White House, soon headed back to their wonderful country, I will be removing the tariffs and restrictions on whisky having to do with Scotland’s ability to work with the Commonwealth of Kentucky on whiskey and Bourbon,” he wrote, going on to demonstrate at least a passing knowledge of the industry. “People have wanted to do this for a long time, in that there had been great inter-country trade, especially having to do with the wooden barrels used. The King and Queen got me to do something that nobody else was able to do, without hardly even asking! A wonderful honor to have them both in the US.”
According to an article in the New York Times, scotch whisky imports have dropped by 15 percent since the tariff was first imposed, to the tune of a few million pounds per week. Given that sales are already down due to decreased consumption, and distilleries are facing a whisky glut and some are even pausing production, the removal of this tariff certainly comes as very welcome news. “We are hugely grateful for the sustained efforts on both sides of the Atlantic,” said Mark Kent, chief executive of the Scotch Whisky Association, in a statement. “For months, many have worked tirelessly to return zero-for-zero tariff trade for whisky and bourbon. The special relationship that the Scotch Whisky and American Whiskey industries share will be reinvigorated by this announcement.”
Brands and producers have weighed in on the news as well. Independent whisky producer Ian Macleod Distillers, owner of distilleries like Rosebank and Glengoyne, issued a statement. “This is great news for our company and for our industry,” said sales and brand director Ian Shackleton. “As a small, family-owned producer with some world famous, multi-award-winning brands, the U.S.A. is a vital and growing marketplace for us. We have some excellent partners in North America and the freer we are to work with them, the better it is for all concerned.” Martha Dalton, cofounder of Never Say Die Bourbon, which ages its whiskey in the U.K. and ships it back to the U.S., also celebrated the news. “Let’s ride this wave,” she said. “This can’t stop at whisky. Other U.K. spirits are still carrying a 10 percent tariff into the U.S., and Irish whiskey from the Republic is facing 15 percent. Let’s finish the job and lift tariffs on spirits across the board. What businesses need is stability—the ability to plan, invest and grow with confidence.”
It should be said that the president is prone to abruptly changing his mind and reversing decisions, and tariffs are an economic tool that he seems to think can be very effective. But hopefully, for both the American and Scottish whiskey industries, this whisky tariff is gone for good. We will update you with any news as it develops.
