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Tariffs

Whisky Tariffs Must Go: Scotland's Economy at Stake

Strategic Insights

— 1 min read

As the UK Government prepares to meet with US President Donald Trump, First Minister John Swinney is pressing for a deal that will lift the 10% tariff on Scotch whisky exports to the US. This lucrative trade has employed 20,000 people in Scotland and generated £37.6 billion in revenue by 2025, with a projected value of £61.6 billion by 2032. Swinney has visited George Washington's Distillery in Mount Vernon to emphasize the importance of the economic relationship between Scotland and the US, which dates back to the 1700s.

Key Takeaways:

  • The US is the largest single-country destination for Scotch whisky, with Scottish distillers spending hundreds of millions of dollars annually on used bourbon casks from Kentucky.
  • The Scotch whisky industry employs approximately 20,000 full-time equivalent people in Scotland, while the Kentucky Distillers Association estimates bourbon generates 23,100 jobs in Kentucky alone.
  • Scottish Enterprise values the Scottish whisky market at £37.6 billion in 2025, with a projected value of £61.6 billion by 2032.
  • The 10% reciprocal tariff increase could result in between £200m and £400m export losses on an annual basis to the US alone, according to the Scotch Whisky Association (SWA).
  • The UK Government's decision to increase alcohol duty on spirits by 10.1% in 2023 and 3.6% in 2024 has adversely impacted Scotland, with 70% of UK spirits made in Scotland.
  • First Minister John Swinney is backing the SWA's calls for the UK Government to address this disparity and inherent unfairness in the forthcoming Budget.

Statistics:

  • 20,000: number of people employed in the Scotch whisky industry in Scotland
  • £37.6 billion (2025): value of the Scottish whisky market as estimated by Scottish Enterprise
  • £61.6 billion (2032): projected value of the Scottish whisky market as estimated by Scottish Enterprise
  • 23,100: number of jobs generated in Kentucky by the bourbon industry as estimated by the Kentucky Distillers Association
  • £200m-£400m: potential export losses to the US alone due to the 10% tariff increase as estimated by the SWA
  • 10.1% (2023) and 3.6% (2024): increases in alcohol duty on spirits by the UK Government

Sources:

  • The Herald on Sunday, "Whisky tariffs should now be on PM's 'radar' when he meets Trump next week" by John Swinney
  • Scottish Enterprise, "Value of the Scottish Whisky Market"
  • Kentucky Distillers Association, "Bourbon Industry Facts"
  • Scotch Whisky Association, "Trade Tariffs and Brexit"

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