U.K. whiskey tariffs eased after Trump met with King Charles III
President Donald Trump posted online Thursday that he would remove tariffs on some whiskey, a move that could ease trade tensions for Scotch whisky and Kentucky bourbon producers.
Trump met with King Charles III and Queen Camilla at the White House this week, in a state visit during which the king urged citizens of both countries to defend democratic values. Trump posted on Truth Social following the visit that he would remove “the Tariffs and Restrictions on Whiskey having to do with Scotland’s ability to work with the Commonwealth of Kentucky on Whiskey and Bourbon” in honor of the king and queen.
“The King and Queen got me to do something that nobody else was able to do, without hardly even asking!” he wrote. “A wonderful Honor to have them both in the U.S.A.”
The White House did not immediately clarify whether the removal applies to all U.K. whiskey and related goods and when it will take effect. U.S. Trade Representative Jamieson Greer issued a statement after Trump’s post, saying that the U.S. will allow “preferential duty access” for whiskey made in the U.K.
A significant amount of Scotch exports go to the U.S., and Trump specifically called out American bourbon wooden barrels used by Scotch producers to age their products, a common practice in Scotland.
Imports from the U.K. have been largely subjected to 10% tariffs for the last year, as part of Trump’s widespread, global tariff policies. The U.K. and U.S. signed a trade pact agreeing to the 10% rate for most goods last May. After the U.S. Supreme Court ruled most of Trump’s tariffs invalid in February, the president imposed a universal 10% tariff using a different law.
Whiskey tariffs are just the latest example of countries and industries that have approached Trump to try to negotiate a deal to get out from under aggressive tariff policies. Countries around the globe bargained trade agreements with the U.S. over the past year after Trump put his “reciprocal” tariffs in effect last April. (Those reciprocal tariffs were thrown out by the high court.)
Some of those trade agreements remain unfinished, but some are advancing – the European Parliament last month approved major provisions of the agreement that the bloc reached with the U.S. last year.
The Distilled Spirits Council of the United States, which has been pushing for a return to zero percent tariffs on imports and exports of spirits, applauded Trump’s announcement Thursday.
“The removal of the 10% tariff on UK whisky would be a major victory for American hospitality businesses that are deeply impacted by international trade,” President and CEO Chris Swonger said in a statement.
Still, a deal with the U.K. would not on its own restore American spirit exporting to pre-tariff levels. U.S. spirits exports declined nearly 4 percent last year, according to the council, in large part because trade with Canada and the European Union dropped. Exports of American whiskeys specifically plummeted 19 percent last year.