UK Secures Tariff Reduction on Scotch Whisky Exports to China

During a recent visit to Beijing, UK Prime Minister Keir Starmer announced a significant agreement with China to reduce tariffs on Scotch whisky from 10% to 5%. This deal, which is expected to be implemented on February 2, 2026, is projected to be worth £250 million (approximately $345 million) to the UK economy over the next five years. China ranks as the 10th largest market for Scotch whisky by value, with exports reaching £161 million in 2024, although this figure represented a 31.5% decline from the previous year.

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The tariff reduction follows a broader strategy by the UK government to enhance trade relations with key markets. This includes a recent free trade agreement with India, which also significantly reduced tariffs on Scotch whisky, aiming to boost sales by up to £1 billion annually. The UK government has emphasized the importance of Scotch whisky as a high-value export, with the industry generating £5.5 billion in overseas sales in 2024.

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Mark Kent, Chief Executive of the Scotch Whisky Association (SWA), highlighted that China has become a priority growth market for many Scotch producers, noting the country's increasing appreciation for premium products. He stated, “The proposed tariff reduction from 10% to 5% has the potential to re-energise exports of Scotch to this important market.” Other industry leaders, such as Stephen Davies from Penderyn Distillery, expressed optimism about the deal, although he acknowledged the challenges faced in the Chinese market over the past two years.

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Prime Minister Starmer remarked, “Our whisky distilleries are the jewel in Scotland’s crown. Having already slashed tariffs on whisky exports to India, we’re now doing the same with China – proof that our pragmatic, hard-headed international engagement brings benefits at home.” Scotland’s Secretary for State, Douglas Alexander, described the agreement as a “tremendous result” that opens doors for Scottish exporters.

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Despite the positive reception from industry leaders, some analysts caution that the whisky market in China has faced significant challenges, including a 5.7% drop in UK whisky exports in the first nine months of 2025. The long-term impact of the tariff reduction remains uncertain, particularly in light of recent declines in demand.

China to lower tariffs on whisky in £250m boost to UK exporters

The agreement not only focuses on tariff reductions but also includes commitments to enhance cooperation between the UK and China in various sectors, including trade and technology. The UK government aims to build on this momentum to further strengthen its economic ties with China and other key markets.

UK whisky exporters get £250m trade boost after China halves tariffs to 5%

• “The proposed tariff reduction from 10% to 5% has the potential to re-energise exports of Scotch to this important market.” — Mark Kent, Chief Executive, Scotch Whisky Association

UK secures Scotch whisky tariff cut in China

• “Sir Keir said: “Our whisky distilleries are the jewel in Scotland’s crown.” — Keir Starmer, Prime Minister of the UK

China deal will cut tariffs on Scotch whisky, Sir Keir Starmer says

• “The Labour MP said: “From Delhi to Beijing, this Government is opening doors for Scottish exporters and putting money in the pockets of working people across Scotland.” — Douglas Alexander, Scotland’s Secretary for State

China deal will cut tariffs on Scotch whisky, Sir Keir Starmer says