Trump ends tariffs on Scotch whisky after King Charles visit

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(The Center Square) – President Donald Trump said he will remove the 10% tariff on Scotch whisky imports and lift restrictions on the barrel trade between Scotland and Kentucky, a move the industry called a "significant boost" that ends months of economic losses.


Trump made the announcement in a Truth Social post Wednesday as King Charles III and Queen Camilla departed Washington after a four-day state visit tied to the United States' 250th anniversary of independence.


"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 Whiskey having to do with Scotland's ability to work with the Commonwealth of Kentucky on Whiskey and Bourbon," Trump wrote. "The King and Queen got me to do something that nobody else was able to do, without hardly even asking!"


Trump imposed a 10% baseline tariff on all imports in April 2025 as part of his "Liberation Day" trade agenda. After the U.S. Supreme Court struck down that tariff regime in February 2026, the administration immediately reimposed a 10% global import duty under Section 122 of the Trade Act of 1974. That rate applied to imported goods, including Scotch whisky.


The Section 122 duty exempted certain categories of goods from the 10% rate, including critical minerals, pharmaceuticals, energy products, and passenger vehicles. Scotch whisky was not among the exempted categories. The White House did not immediately provide details on the timing or mechanism for implementing the removal.


Mark Kent, chief executive of the Scotch Whisky Association, said the announcement delivers relief to an industry under significant financial pressure.


"This deal is a significant boost for the Scotch Whisky industry in our most valuable export market," Kent said. "Distillers can breathe a little easier during a period of significant pressure on the sector. For months, many have worked tirelessly to return zero-for-zero tariff trade for whisky and bourbon."


Eric Gregory, president of the Kentucky Distillers' Association, said the announcement restores a key trade partnership.


"This action restores reciprocal, tariff-free trade between our historic spirits and is especially important for Kentucky, as Scotch distillers have long been the largest export market for Kentucky's used Bourbon barrels," Gregory said in a statement. "Kentucky Bourbon is a cornerstone of our state's economy, contributing over $10.6 billion annually and supporting nearly 24,000 jobs across the Commonwealth."


The United Kingdom is Kentucky's second-largest export destination, with nearly $5.4 billion in products shipped there in 2025, according to data from Gov. Andy Beshear's office. Kentucky set an all-time export record of $50.6 billion that year.


The announcement specifically addresses the barrel trade at the heart of the Scotland-Kentucky commercial relationship. By law, Kentucky Bourbon must be aged in new, charred oak barrels used only once. Scottish distillers are major buyers of those used barrels, making Scotland a critical market for Kentucky cooperages and distilleries.


Beshear had publicly called on Trump to "roll back the tariffs" as recently as February 2026, citing the importance of trade partnerships to Kentucky's record export growth.


Kent said the removal of the tariff would reinvigorate a commercial partnership spanning generations.


"The special relationship that the Scotch Whisky and American Whiskey industries share will be reinvigorated by this announcement," Kent said. "While challenges in our sector remain, we can now redouble our efforts to boost the benefits our two great industries bring to communities across Scotland and the US."


The royal visit marked the first time a sitting British monarch has visited Washington since Queen Elizabeth II called on President George W. Bush in 2007. King Charles III addressed a joint session of Congress on Tuesday, the first monarch to do so since Queen Elizabeth II in 1991, citing $430 billion in annual U.S.-UK trade and defending the NATO alliance.


The White House was contacted for comment.

 

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