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    US Restores Zero Tariffs On Scotch And Other UK Whiskies

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    US Restores Zero Tariffs On Scotch And Other UK Whiskies
    Credit: Yoav Aziz / Unsplash

    The United States has restored zero-tariff treatment for Scotch and other UK whiskies, carving the category out of a wider Section 301 action imposing new duties on goods from 60 trading partners.

    The Office of the United States Trade Representative announced the action on July 23, with the tariffs taking effect at 12:01 a.m. Eastern Time on July 24. USTR said the countries had failed to enforce prohibitions on imports made using forced labor.

    Section 301 allows the US to respond to foreign government practices it considers harmful to US commerce. Under the new action, most UK goods face an additional 10% tariff, while many other economies have been assigned a 12.5% rate.

     

    However, the official Federal Register notice states that the duty does not apply to UK products classified under HTSUS codes 2208.30.30 and 2208.30.60. These cover “Irish and Scotch whiskies” and “whiskies, other than Irish and Scotch whiskies.”

    As the exemption applies to products originating in the United Kingdom, it covers Scotch and qualifying whiskies made in England, Wales and Northern Ireland. The UK government confirmed that the change created zero-tariff access and said the first tariff-free Scotch shipment would leave for the US within 48 hours.

    The move implements an April commitment under the US-UK Economic Prosperity Deal to grant preferential duty access to whiskey produced in the UK.

    The Toasts Not Tariffs coalition welcomed the exemption, saying it would benefit US consumers and thousands of American businesses that import, distribute, market, sell and serve UK whisky.

    Distilled Spirits Council president and CEO Chris Swonger called the decision “much-needed relief” for US hospitality businesses and a step toward restoring zero-for-zero trade.

    Secretary of State for Scotland Douglas Alexander said: “This is a very welcome day for the Scotch whisky industry. As the largest value market for whisky, the US is one of the most important for the sector. This trade milestone between the US and UK shows the bonds the countries have and the benefits from working closely in partnership.

    “I’m sure many in Scotland and the US will be raising a dram today to celebrate the ending of tariffs on one of our most beloved and respected Scottish products.”

    The wider Section 301 action has drawn a far less positive response. Reuters reported that the duties cover trading partners responsible for 99.4% of US imports, although numerous products are exempt. Reuters also described the measure as the administration’s first step toward rebuilding President Donald Trump’s near-global tariff system after the US Supreme Court struck down his earlier “reciprocal” tariffs.

    According to Reuters’ roundup of international reactions, China opposed the unilateral duties, Australian trade minister Don Farrell called them “completely unjustified,” and Brazil described them as “arbitrary and unjustified” while announcing plans to pursue the matter through the World Trade Organization. Norway said there was “no basis” for the tariffs.

    The European Commission gave the announcement a guarded welcome, saying the outcome remained consistent with existing US tariff commitments. However, EU foreign policy chief Kaja Kallas told Reuters that the forced-labor justification was “not really grounded.”

    The exemption does not automatically extend to other UK spirits or wines. Both Toasts Not Tariffs and DISCUS said they would continue pressing for broader tariff relief. Chris Swonger added: “We look forward to working with the administration to build on this progress by extending tariff relief to other imported spirits, particularly those from the European Union, which would help reduce costs for restaurants, bars and other hospitality businesses across the country.”

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