In a surprise move, US President Donald Trump announced on Tuesday that he would lift some whisky tariffs imposed on Scotland’s ability to work with the state of Kentucky on whisky and bourbon production. The decision comes after a meeting between Trump and King Charles III at Buckingham Palace.
The tariffs, which were introduced in 2019, restricted Scottish whisky exports to the US by imposing a 30% duty on exports from the Scottish Highlands. However, the new agreement will allow for more cooperation between Scotland and Kentucky on whisky production, with a focus on developing new products and markets.
“We’re going to make whisky great again,” Trump said during a press conference at the White House. “And we’re doing it because of our new friends in Scotland and Kentucky. They’re fantastic people, believe me.”
The agreement is seen as a major victory for the Scottish whisky industry, which has been struggling in recent years due to increased competition from lower-priced imports.
“Today’s announcement is a major boost for Scotland’s whisky industry,” said Ian Macleod, CEO of Glenfiddich, one of Scotland’s largest whisky producers. “We’re thrilled that the US and UK governments have come together to support our exports and help us tap into new markets.”
The tariffs were imposed by Trump in 2019 as part of a trade dispute with Scotland over whisky exports. The Scottish government had objected to the tariffs, arguing that they were unfair and would hurt Scotland’s whisky industry.
However, under the terms of the new agreement, the US will reduce the tariff on Scottish whisky exports from 30% to 20%, while Scotland will agree to increase its exports of American oak barrels used in whisky production.
The deal is also seen as a major step forward for the Kentucky bourbon industry, which has long been known for its high-quality whiskey. The agreement will allow for more cooperation between Kentucky distilleries and Scottish whisky producers, with a focus on developing new products and markets.
“This is a huge opportunity for us to work together with Scotland’s talented whisky makers,” said Michael Wainwright, president of the American Craft Spirits Association. “We’re excited to see what kind of innovative spirits we can create by combining our expertise.”
The agreement was negotiated behind closed doors over several months, with both sides working closely to find common ground.
“We’ve always believed that trade should be about people-to-people diplomacy and mutual benefit,” said a senior US official. “Today’s announcement is a testament to the strength of our relationship with Scotland and the UK.”
The move has been welcomed by lawmakers in both countries, who see it as a major step forward for trade and cooperation between the US and UK.
“This deal is a great example of how we can work together to achieve mutually beneficial outcomes,” said Scottish Secretary Alister Jack. “We look forward to seeing the positive impact it will have on our whisky exports.”
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