President Donald Trump, following a White House visit this week by by King Charles III and Queen Camilla of the U.K., announced he will lift certain tariffs on Scotch whisky.

Trump had imposed a 10% tariff on Scotch early in his second term, much to the dismay of whiskey makers in the U.K. and U.S. He announced the change in a social media post.

However, according to PBS.org’s reporting, it remains unclear if the tariffs are being lifted on bottles of Scotch or on the materials used to produce alcohol in both countries. For example, most Scotch is aged in used bourbon barrels, often sourced from Kentucky.

“I will be removing the Tariffs and Restrictions on Whiskey having to do with Scotland’s ability to work with the Commonwealth of Kentucky on Whiskey and Bourbon,” Trump said in his post..

Regardless of its lack of clarity, the announcement was met with enthusiasm in the U.S. The Kentucky Distillers’ Association announced praise for the return of “reciprocal, tariff-free trade” with Scotland.

“For generations, Kentucky and Scotland have been close partners in crafting the world’s most sought‑after whiskies. The Kentucky Distillers’ Association applauds President Trump’s decision to remove tariffs and restrictions on Scotch whisky,” Eric Gregory, KDA President, said in a statement. “This action restores reciprocal, tariff-free trade between our historic spirits and is especially important for Kentucky, as Scotch distillers have long been the largest export market for Kentucky’s used Bourbon barrels.”

“We are thrilled to see President Trump’s Truth Social post and thank him for his leadership on this issue,” Chris Swonger, Distilled Spirits Council of the United States President & CEO, said. “The removal of the 10% tariff on UK whisky would be a major victory for American hospitality businesses that are deeply impacted by international trade. The United States and the United Kingdom share a deep and enduring spirits tradition built on generations of craftsmanship, agriculture and market access. 

“We applaud President Trump for working to restore a proven zero‑for‑zero model of fair, reciprocal trade between our two nations. This action strengthens transatlantic ties, brings much‑needed certainty to our industry and allows spirits producers on both sides of the Atlantic to grow, invest and support jobs at a critical time.”

The announcement also was welcomed by the whiskey investment segment of the industry.

John Kennedy, Managing Director at Decant Index, said: “This is a genuinely meaningful moment for the Scotch whisky market. The U.S. isn’t just another export destination — it’s the price-setting market for premium whisky globally. Removing a 10% tariff doesn’t just improve margins today, it resets the long-term pricing curve for the entire category.”

Kennedy said that for cask investors, this is powerful: “You’re not buying today’s market — you’re buying into where that cask will exit in five, ten, fifteen years. A structurally more accessible US market increases demand at the premium end, improves liquidity, and ultimately supports higher valuations over time.

“A stronger U.S. whiskey market increases bourbon production, which increases the supply of high-quality first-fill casks into Scotland. That improves the economics of maturation as well as the exit environment. It’s rare you see both sides of the equation improve at once.”

At least one whiskey company, Never Say Die Bourbon, announced it will resume shipments to the American market following Trump’s statement.

“We have not shipped a single bottle of Never Say Die to the United States since the new tariffs were introduced in early 2025,” Brian Luftman, Co-Founder of the brand, said in a statement. “With retailers running out of inventory of Never Say Die, we were considering paying the tariff to replenish American inventory.  King Charles’ progressive meeting with President Trump could not have come at a better time.  We had delayed shipments in hope of a lucky moment — and that moment has now arrived.”

According to Gregory, whiskey makers in Kentucky stand to gain if Trump follows through on his social media declaration.

“Kentucky Bourbon is a cornerstone of our state’s economy, contributing over $10.6 billion annually and supporting nearly 24,000 jobs across the Commonwealth,” he said. “While Kentucky Bourbon continues to face its fair share of challenges, this development is welcome news for our signature industry’s ongoing efforts to share America’s only native spirit with enthusiasts around the world.”

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