The Scottish government is actively seeking a reduction or complete removal of a 10% import tariff on Scotch whisky entering the United States. This move coincides with the growing uproar from the whisky industry that these tariffs are already losing businesses an estimated £4 million per week. John Swinney, the Scottish Finance Secretary, made a brief two-day trip to Washington D.C. On his visit, he met with former President Donald Trump and raised a critical need.
During their 50-minute meeting in the Oval Office, Swinney underscored the importance of the Scotch whisky trade and its significant economic contributions. Not surprisingly, the U.S. is by far and away the largest export market for Scotch. In 2024, it represents just under a fifth of all exports, worth nearly £1 billion. The tariffs were damaging to Scottish distillers. They have a huge impact on the U.S. bourbon industry, which relies on a £220 million-a-year trade in used casks.
In July, the Scottish secretary persuaded Trump on the tariff issue during an audience at the tycoon’s golf course in Aberdeenshire. He said that during the Trump administration, his arguments were given a serious hearing. He remained encouraged by the possibilities that lay ahead from their discussions and the positive outcomes they can bring.
“A better deal for whisky was not previously on the agenda – and it now very much is.” – John Swinney
Swinney spoke about the positive impacts of removing these tariffs. He cast it as a “truly win-win” situation for Scotch distillers as well as American bourbon producers. The Trump administration established the current 10% tariff as a de facto floor. The subsequent decision has created huge uncertainty for all businesses involved in the whisky trade.
Swinney’s persistence paid off by keeping them focused on the big employers. In parallel, Prime Minister Sir Keir Starmer hosted critical discussions with Trump during the latter’s recent trip to Scotland. Despite the pressure shipyards in both countries face, Starmer is still keen to secure additional concessions on the tariffs. The agreement to pause a harmful tax, reached under the Biden administration, will lapse next summer.
The Scotch Whisky Association (SWA) has been pounding the halls of Westminster and Washington, D.C. Arguably, they are keen to not be seen to be the people who reintroduced the 25% tax on SMW. This curiosity shows a larger concern within the industry about the long-term effects that these tariffs will have on their ability to access the market.
“But the ball is firmly in the UK government’s court. They must press on with the detailed negotiations and try to get a deal over the line.” – John Swinney
Swinney slammed the UK government for leaving whisky out of its trade negotiations with Trump. He has since come to feel that considerable progress has been made. As a matter of fact, he boasted that he “fixed that over the summer.” For the first time, he says, it’s getting the acknowledgement that it’s an important issue.
Moreover, he expressed hope for a positive outcome from his discussions with Trump, saying, “I think – and I hope – there is now a real chance of a better deal.”
The ongoing Scotch whisky tariff discussion is an illustration of the duplicitous nature of international trade negotiations. These negotiations play a crucial role in determining what is spent in local communities. Both Scottish and U.S. industries have their fingers crossed for the next steps. These stakeholders are hoping that the current discussions will produce concrete changes to tariff policies that better serve their interests.