UK and China Strike Major Whisky Deal: Scotch Tariff Halved

The United Kingdom and China have struck a deal that could give whisky exports a major boost. Chinese import tariffs on Scotch whisky, among other products, are being cut in half.

During Prime Minister Keir Starmer’s visit to Beijing, he secured an agreement that could breathe new life into the trade of Scotch (and British) whisky. The signed trade deal reduces import tariffs on Scotch whisky from 10% to 5%.

That instantly makes a vast sales market more attractive than ever for distilleries.

The deal is expected to generate an estimated £250 million for the UK economy over the next five years. According to the government, the tariff cut will help whisky producers become more competitive in one of the fastest-growing consumer markets in the world.

In 2024, China was the 10th largest market for Scotch whisky in both value and volume. However, shipments to the country have declined in recent years. That year, the total value fell by a third to £161 million.

Total whisky exports from the UK fell by more than 5 percent last year (in the first nine months). There are several reasons for this, including looming import tariffs from the United States.

This deal could change the picture significantly, given whisky pricing. The Scotch Whisky Association reports that Chinese whisky enthusiasts are showing growing interest in premium products, and whisky fits perfectly into that trend.

The industry has welcomed the new trade agreement. China is seen as a strong long-term market for Scotch whisky.

The pivot toward the Chinese market isn’t new. Several major whisky makers and drinks companies have already invested in China and launched distilleries. Recently, Iain McAlister also moved to China to take up a role at a distillery there.