Home Business NewsKing toasts Trump after whisky tariffs scrapped in surprise White House move

King toasts Trump after whisky tariffs scrapped in surprise White House move

by LLB staff reporter
1st May 26 10:40 am

The King has hailed a surprise intervention by Donald Trump to scrap tariffs on Scotch whisky, in a move that offers a significant boost to one of Britain’s most valuable export industries.

In an unexpected gesture following a State Visit to Washington, the US president confirmed he would remove restrictions on Scottish whisky, citing both its longstanding ties with the American bourbon industry and the influence of the royal visit.

King Charles III is said to have been informed of the decision shortly after it was made, with Buckingham Palace describing it as a “warm gesture” that would make a “meaningful difference” to the industry and the livelihoods it supports.

In a statement, the Palace said the King would be “raising a dram” to Mr Trump in appreciation of what it described as a thoughtful and generous decision, marking a rare moment of direct royal influence on international trade.

Mr Trump, announcing the move on his Truth Social platform, suggested the decision had been shaped in part by his discussions with the King and Queen during their visit.

“People have wanted to do this for a long time,” he said, adding that the monarchs had achieved what others had not. “The King and Queen got me to do something that nobody else was able to do.”

The removal of tariffs represents a major win for Scotland’s whisky producers, who have faced mounting losses under previous US trade measures. The United States remains the largest single export market for Scotch, making access to it critical to the sector’s health.

Industry figures estimate that earlier tariffs imposed between 2019 and 2021 cost the sector more than £600 million, while the current 10 per cent levy has been draining millions more from exports each week.

The Scotch Whisky Association welcomed the announcement, describing it as a “significant boost” that would allow distillers to “breathe a little easier” after years of pressure.

Chief executive Mark Kent said the move would help restore the “special relationship” between Scotch and American whiskey producers, particularly in areas such as cask supply, where transatlantic cooperation is central to production.

The political response, however, has been swift and sharply divided.

John Swinney hailed the decision as “tremendous news”, arguing that sustained efforts by the Scottish Government had helped secure the breakthrough. He pointed to his own engagement with the US administration, both in Scotland and Washington, as instrumental in raising awareness of the issue.

But critics were quick to challenge that narrative. Russell Findlay accused the SNP of attempting to claim credit for a decision driven elsewhere, insisting it was the King who had secured the agreement.

Meanwhile, Anas Sarwar praised the UK Government’s role, citing ongoing diplomatic engagement with Washington as a key factor in the outcome.

The lifting of tariffs comes at a critical moment for the whisky industry, which has been grappling with rising costs, global uncertainty and the lingering effects of previous trade disputes.

Business Secretary Peter Kyle described the move as “great news” for an industry that supports thousands of jobs and contributes nearly £1 billion in exports.

For producers, the decision removes a significant barrier at a time when global demand remains strong, but margins are under increasing pressure.

For Downing Street, it offers a rare positive development in UK-US trade relations. And for the King, it represents an unusual but striking example of soft power translating into tangible economic gain.

As the dust settles, one point is clear: a dram raised in celebration may taste all the sweeter for an industry that has spent years waiting for relief.

Chief executive Mark Kent said: “This deal is a significant boost for the Scotch Whisky industry in our most valuable export market. Distillers can breathe a little easier during a period of significant pressure on the sector.

“We are hugely grateful for the sustained efforts on both sides of the Atlantic. For months, many have worked tirelessly to return zero-for-zero tariff trade for whisky and bourbon. The special relationship that the Scotch Whisky and American Whiskey industries share will be reinvigorated by this announcement.

“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.”

Business and trade secretary Peter Kyle said: “This is great news for our Scotch whisky industry, which is worth almost £1 billion in exports and supports thousands of jobs across the UK.

“I have been advocating for lower tariffs on key exports like whisky to protect vital jobs and iconic British brands while strengthening our relationship with the US.”

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