US Tariffs Contribute to Drop in Scotch Whisky Exports in 2025

US Tariffs Contribute to Drop in Scotch Whisky Exports in 2025

Global shipments of Scotch whisky experienced a modest decline in 2025 as the industry faced a combination of trade barriers, rising operational costs and changing consumer spending patterns. New export figures published by the Scotch Whisky Association (SWA) reveal that international sales fell slightly in value and more noticeably in volume, reflecting the pressures currently affecting the sector.

Although Scotch whisky remains one of the United Kingdom’s most valuable food and drink exports, the data highlights how geopolitical tensions and economic headwinds are influencing the global trade landscape.

Global Export Performance in 2025

During 2025, worldwide exports of Scotch whisky were valued at £5.36 billion, with roughly 1.34 billion bottles shipped internationally. That equates to approximately 43 bottles exported every second.

Compared with 2024, export value declined by 0.6%, while total export volume dropped by 4.3%. This follows a similar trend seen the previous year, suggesting the industry is currently navigating a more complex global trading environment.

A number of factors have contributed to the slowdown, including:

  • Trade tariffs in key international markets
  • Increasing production and operating costs within the UK
  • Softer global demand for premium spirits

While the industry continues to benefit from strong global recognition and heritage, these pressures are impacting producers across the supply chain.

US Tariffs Have Immediate Impact

The United States remains the most valuable export destination for Scotch whisky, but new tariffs introduced in 2025 have created significant challenges.

In April 2025, the US implemented a 10% tariff on Scotch whisky imports, which has since led to a notable decline in shipments.

Export data shows:

  • Export value to the US fell 4% to £933 million in 2025
  • Export volume dropped 9.2% to approximately 120 million bottles

The effect became particularly clear in the months following the tariff introduction. Between May and December 2025, exports to the US fell by 15% in volume and 7% in value, demonstrating how quickly trade policies can influence demand.

Industry leaders have urged the UK government to secure a new agreement that would restore tariff-free trade between the two countries. The issue has been raised directly with Donald Trump by UK Prime Minister Keir Starmer and Scotland’s First Minister John Swinney.

There is also concern that tariffs could increase further later this year. The industry is approaching the end of a five-year suspension of a previous 25% tariff on single malt Scotch, introduced during the Airbus–Boeing trade dispute. That earlier tariff cost producers more than £600 million in lost exports between 2019 and 2021.

Rising Costs at Home Add to Pressure

While international trade barriers have created obstacles overseas, producers are also dealing with increasing costs domestically.

Over the past three years, UK spirits duty has increased by more than 17%, placing additional pressure on distilleries already facing rising production costs, energy prices and regulatory requirements.

The industry has also highlighted new packaging taxes and additional compliance obligations as contributing factors to the challenging environment.

Some distilleries have responded by reducing production levels or delaying expansion plans, while job losses have started to appear across parts of the whisky supply chain.

Without policy support from both Westminster and the Scottish Government, industry leaders warn that further closures could occur in 2026.

Key Export Markets Around the World

Despite the current slowdown, Scotch whisky continues to reach consumers in markets across Europe, Asia and the Americas.

Largest Export Markets by Value (2025)

  1. United States – £933m
  2. France – £404m
  3. India – £286m
  4. Singapore – £274m
  5. Turkey – £255m
  6. Taiwan – £233m
  7. Spain – £208m
  8. Germany – £177m
  9. China – £161m
  10. United Arab Emirates – £155m

India has been one of the strongest growth markets, recording 15% growth in export value and becoming the third largest market globally.

Regional Trends in the Global Market

Europe

The European Union remains the largest regional market for Scotch whisky by volume, with exports valued at approximately £1.5 billion in 2025.

France continues to be one of the most important individual markets, although shipments declined during the year. Meanwhile, Germany and Spain recorded growth in export value.

Asia-Pacific

The Asia-Pacific region experienced an 8.3% decline in export value, although overall volumes remained broadly stable.

However, there are signs of potential recovery. Recent policy changes include China reducing its tariff on whisky imports to 5%, which could stimulate demand in the coming years.

Emerging Opportunities

Looking ahead, several international markets could offer future growth potential for Scotch whisky, including:

  • Thailand
  • Indonesia
  • Mercosur countries in South America
  • Gulf Cooperation Council (GCC) states

Trade agreements with these regions could help the industry expand its global reach over the long term.

Premium Categories See Softer Demand

Export trends also show a shift in consumer purchasing behaviour, particularly within premium categories.

In 2025:

  • Single malt exports declined by 6% in value
  • Demand weakened in several key markets including China, France and Singapore

By contrast, blended Scotch whisky remained relatively stable, accounting for around 60% of total export value and reaching £3.2 billion in global sales.

This reflects a broader trend in which consumers in some markets are temporarily shifting towards more accessible price points.

Long-Term Outlook for Scotch Whisky

Despite the challenges of the past year, Scotch whisky remains one of the most globally recognised spirits and continues to enjoy strong demand worldwide.

The sector has historically proven resilient through economic cycles, trade disputes and shifting consumer trends. Industry leaders remain confident that the combination of heritage, quality and growing international appreciation for premium spirits will support future growth.

However, achieving that potential will likely depend on improved trade conditions, supportive domestic policies and continued expansion into emerging markets.

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