Scotch whisky exports to the United States will enter the country tariff-free from Friday after the UK and US implemented a trade agreement reached earlier this year, in a move welcomed by

the industry as a major boost for one of Britain's most valuable exports.

The removal of US tariffs follows an agreement reached during King Charles III's visit to the United States in April. The US is the largest export market for Scotch whisky by value, with shipments worth around £1 billion in 2025, representing almost one-fifth of all UK whisky exports.

Scotland Secretary Douglas Alexander marked the change with a visit to Pernod Ricard's Strathclyde Distillery in Glasgow, where he described the tariff removal as a "day of celebration" for Scotland's whisky sector.

He said the agreement would create new opportunities for growth in the US market and highlighted the close trading relationship between Britain and the United States. Alexander also said the deal followed another significant breakthrough for the industry earlier this month, when the UK-India Free Trade Agreement came into force, reducing India's import tariffs on Scotch whisky from 150% to 75% immediately, with a further reduction to 40% over the next decade.

The Scotch whisky industry supports around 41,000 jobs in Scotland and a further 25,000 across the UK, according to the Scotch Whisky Association.

Pernod Ricard, whose Strathclyde Distillery produces grain whisky used in brands including Ballantine's and Chivas Regal, said the lower tariffs would strengthen investment and support long-term growth.

Nodjame Fouad, chief executive of Pernod Ricard's Aged Spirits and Champagne division, said improved market access would help drive economic growth in Scotland and across the UK, while also showcasing innovations such as the distillery's energy-efficiency technology.

The Scotch Whisky Association also welcomed the return to tariff-free trade with the US.

Its International Director, Ian Duddy, said the removal of tariffs would provide greater confidence for businesses to invest, expand exports and support jobs throughout Scotland and the United States. He added that the benefits would extend beyond whisky producers to supply chains including cooperages, agriculture, hospitality and retail.

The announcement comes despite a wider round of US global tariff measures introduced on Friday. The UK government said its Economic Prosperity Deal with Washington remains in force, preserving zero tariffs for both Scotch whisky and medical technology exports.

Ministers said the US agreement forms part of a broader strategy to expand British trade, alongside recent agreements with India and ongoing negotiations with the Gulf Cooperation Council and the European Union. Photo by Guinnog, Wikimedia commons.

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