Douglas FraserScotland Business and Economy Editor and
Aimee StantonData journalist

Donald Trump is back in the UK and in Scotland eyes are focused on what he might do about import taxes on Scotch whisky.
The Scottish government is seeking a reduction or removal of the 10% tariff, which the whisky industry says costs businesses £4m per week.
Scotland’s national drink is a standout success story as a traded product.
It is a form of liquid currency available in any country that allows alcohol – with its origins limited to one small country.
Whisky has grown to become an important part of Scotland’s and the UK’s trade story.
It is by far the biggest export in food and drink and it plays a clear role in Scotland’s tourism offer.
This week in particular, whisky stands as a challenge to Donald Trump and his US administration – will they make an exception for the product that represents the foreign nation which the US President holds dearest?
Could this be the commodity, and could the state visit be the moment, to start dismantling the more damaging aspects of these current tariff wars?
The looming threat of further trade taxation hangs over single malt whisky, which was subject to a 25% rate during Trump’s first presidency. A deal struck to suspend that levy during Joe Biden’s time in office is due to expire next summer.
The Scotch Whisky Association (SWA) has called for the UK and US governments to agree a permanent settlement to ensure the higher rate is not reimposed, potentially on top of the current 10% tariff.
Trump announced a 10% tariff on most UK goods earlier this year, as part of his efforts to boost US industries at the expense of international competitors.
The 10% tariff is a base rate, and lower than the 15% tax on EU imports.
The US is the biggest Scotch export market, with about a fifth of all exports heading stateside, and was worth almost £1bn in 2024, according to the SWA.
Overall, whisky exports were worth £5.4bn last year, making it one of the country’s most significant trading products.
Across Scotland there are more than 150 whisky distilleries, which directly employ 14,000 Scots.
And overall, 41,000 jobs are directly and indirectly supported by the industry, as well as over 25,000 across the rest of the UK.
What’s special about Scotch whisky?
The case made by the industry is that it has to be uniquely Scottish and can’t be substituted by any spirit made in the USA.
Its character, they say, draws on £200m worth of American oak casks that each year are used to store maturing whisky. They add that American distillers are just as keen to see tariff barriers dismantled, so that they are free to export bourbon and tequila.
The US tariffs have been a hard hit for the industry but other markets have even steeper rates.
India’s tariffs are among some of the highest in the world at 150%, while the Republic of Korea is 25%, according to the World Trade Organisation (WTO).
However, whisky trading with India is expected to become easier after a free trade agreement was signed earlier this year. Domestic alcohol duty will also still apply.
But not all countries have such high taxes on Scotland’s national drink.
Major markets like Australia, the EU and Singapore all have 0% tariffs when importing whisky from the UK.
The data is correct as of 9th of September 2025 when the WTO’s Tariff Tracker was last updated.
Whisky isn’t the only Scottish drink dealing with Trump’s new tariffs.
US imports of beer, gin and other alcoholic drinks are also subject to the 10% rate.
And the President’s blanket 10% tariff on imports from countries around the world still applies to most UK items.
However, a deal signed in May reduced tariffs on key areas such as UK exports of cars.
It’s a side deal like this which the whisky industry is lobbying for.
Other sectors seeking exemptions, or looking to head off further industry-specific tariffs from the US, include pharmaceuticals, financial services and machinery and technology.
Plenty of industries will be arguing for a special pass on paying US import taxes. But could Scotch whisky have the winning arguments for achieving that goal?
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