UK-China deal cuts Scotch tariff in half
The UK and China have agreed to a deal that halves tariffs on Scotch whisky to 5%, a move that could “re-energise exports” to the category’s 10th-largest market.
The agreement was signed during UK prime minister Keir Starmer’s visit to Beijing and is said to be worth £250 million (US$343.5m) to the UK economy over the next five years.
The deal, which cuts the tariff from 10% to 5%, will help Scotch whisky makers to “compete more effectively in one of the world’s fastest-growing consumer markets,” the UK government said.
China was Scotch whisky’s 10th-biggest market by value and volume in 2024, according to the Scotch Whisky Association (SWA). The category’s exports to China hit £161m (US$221.2m) in value in 2024, but it was down by 31.5% on the previous year.
Volume-wise, Scotch exports to China fell by 1.7% to 30m bottles in 2024.
Mark Kent, SWA chief executive, said: “China is a priority growth market for many Scotch whisky producers, which in recent decades has developed into a knowledgeable and premium focused market with a strong appreciation of Scotch.
“The proposed tariff reduction from 10% to 5% has the potential to re-energise exports of Scotch to this important market.
“We are very grateful to the prime minister and officials on both sides for this welcome development and look forward to working with the UK government on the rapid implementation of the tariff reduction, as part of wider work to improve competitiveness in all Scotch whisky’s global markets.”
The deal with China followed a major free trade agreement between the UK and India, which slashes tariffs on Scotch and could increase the category’s sales to the region by £1 billion (US$1.37bn) annually.
“Our whisky distilleries are the jewel in Scotland’s crown,” said Starmer.
“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, called the move a “tremendous result” that “opens doors for Scottish exporters” and supports working people.
He added: “With the strength and support of the UK government behind them, Scotland’s finest products can reach every corner of the globe. We will keep fighting for Scottish businesses and Scottish jobs.”
Kieran Healey-Ryder, global head of team at Whyte & MacKay and outgoing chair of Alcohol Partnership Scotland, also praised the deal.
“China has been one of the most dynamic whisky markets in the world over the past decade, particularly as consumers there increasingly value quality, authenticity, and provenance,” he noted. “That makes it a natural long-term market for Scotch whisky, which is a highly desirable crafted product, defined by time.
“Trade developments that improve access while protecting quality standards help reinforce that relationship. When matched with thoughtful domestic policy at home, they support sustainable growth across the whisky industry and the wider hospitality sector.”
Last month, the UK and South Korea finalised a free trade agreement that will enhance Scotch whisky’s access to the market.
Furthermore, exports of UK whisky saw a volume drop of 5.7% in the first nine months of 2025.
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