US lifts tariffs boosting Scotch whisky

Scotch whisky exports to the United States are now tariff-free after the removal of US tariffs came into effect on 24 July, marking a significant boost for one of Scotland’s most valuable export industries.

The change follows the UK-US Economic Prosperity Deal agreed during His Majesty The King’s visit to the United States in April. The US is the largest export market for Scotch whisky by value, with exports worth around £1 billion in 2025 – almost a fifth of all UK whisky exports.

To mark the milestone, Secretary of State for Scotland Douglas Alexander visited Pernod Ricard’s Strathclyde Distillery in Glasgow.

Secretary of State for Scotland Douglas Alexander said: “This is a day of celebration for Scotland’s whisky industry. The removal of tariffs by the US is a significant measure that will open up opportunities for growth and prominence for this already beloved Scottish product in US towns and cities. The action taken by President Trump demonstrates the partnership our two countries have and the close working in trade that supports economic growth both here in the UK and in the United States. This is the second action this month which has opened up the world even more to our whisky exports, with the India Free Trade Agreement, which came into force earlier in July, seeing tariffs reduced from 150% to 40% over the next ten years. Businesses have also benefitted from recent deals with China, the Gulf Co-operation Council, the EU, and the US, as the UK Government delivers for Scotland and continues to use the strength and reach of the UK to support economic growth in Scotland. I join all those raising a dram today for the efforts to reach this point and look forward to seeing our whisky industry flourish.”

The whisky industry supports around 41,000 jobs in Scotland and a further 25,000 across the UK, according to the Scotch Whisky Association. The US tariff removal follows the implementation of the India Free Trade Agreement earlier this month, which cut Indian tariffs on Scotch whisky from 150% to 75% immediately, with a further reduction to 40% over the next decade.

Nodjame Fouad, CEO of Pernod Ricard’s Aged Spirits and Champagne division, said: “We were delighted to welcome Secretary of State Douglas Alexander to the Strathclyde Distillery, to showcase our innovative energy efficiency technology and thank the UK Government for securing reduced tariffs with India and the US. Popular blended Scotch whiskies exported overseas, such as Ballantine’s and Chivas Regal, use grain whisky distilled at Strathclyde in the very heart of Glasgow. Trade deals can be explained in millions of dollars – but it’s when you visit a working distillery like this that you can see how improved market access can help secure economic growth in Scotland and across the UK at large.”

The Scotch Whisky Association said the return to tariff-free trade would encourage investment and support jobs on both sides of the Atlantic.

Ian Duddy, International Director at the Scotch Whisky Association, said:

“The return of tariff-free trade for Scotch Whisky in the US is welcome news for businesses on both sides of the Atlantic. As Scotch Whisky’s most valuable global market, worth £933 million in 2025, the removal of tariffs provides greater confidence to invest, grow exports, and support jobs and communities across Scotland and the US. From Kentucky to Speyside, this will not only benefit the Scotch and US whisky sectors, but our wider supply chains of cooperages, farmers, hospitality and retail. This outcome is testament to the strength of the enduring relationship between the UK and the US. On behalf of the Scotch Whisky industry, we are grateful to everyone who worked to make this happen, including His Majesty The King during his recent State Visit. We look forward to building on this positive momentum and working with partners on both sides of the Atlantic to ensure Scotch Whisky continues to thrive.”

The tariff changes come despite a wider round of US global tariff announcements, with the UK Government saying the Economic Prosperity Deal remains in place, ensuring zero tariffs on both whisky and medical technology exports. Ministers say the agreement is the latest in a series of international trade deals aimed at supporting UK businesses and driving economic growth.