President Trump has announced the removal of tariffs on Scotch whisky following a state visit by King Charles III and Queen Camilla. The decision, made “in honor” of the royal couple, aims to restore trade relations between Scotland and Kentucky and alleviate financial strain on the Scotch whisky industry. This move reverses previous tariffs imposed under a recent trade deal.
READ MORE FROM CNBC
Trump Scraps Scotch Whisky Tariffs ‘in Honor’ of King Charles
U.S. President Donald Trump repealed tariffs on Scotch whisky following a state visit from King Charles III and Queen Camilla, appearing to mend transatlantic relations. Trump announced the decision on his Truth Social platform, stating it was "In Honor of the King and Queen of the United Kingdom," and highlighted their influence in reviving trade between Scotland and Kentucky, particularly regarding the use of wooden barrels.
The move addresses concerns from the Scotch whisky industry, which had been facing significant financial losses due to the tariffs. The Scotch Whisky Association reported losses of £4 million ($5.44 million) per week. Scotland's First Minister John Swinney emphasized the importance of the decision for Scottish jobs and the economy.
The U.K. government confirmed the removal of all whisky tariffs, including those on Irish whiskey. The industry employs around 40,000 people in Scotland and is a major purchaser of used bourbon barrels from the United States. The decision reverses a 10% blanket tariff imposed after the U.K. secured a trade deal with the Trump administration, which had disrupted the previously zero-tariff trade environment.
King Charles, during his address to a Joint Meeting of Congress, underscored the importance of the transatlantic "special relationship." Trump acknowledged the King's influence, stating he acted on the tariffs because he "likes" the King and Queen. Buckingham Palace confirmed the King expressed his gratitude for the decision.
Matthew Barzun, former U.S. Ambassador to the U.K., noted the visit had strengthened trust and understanding between the two nations. The Scotch Whisky Association CEO, Mark Kent, welcomed the decision, highlighting the U.S. as the industry's most valuable export market.