Global Scotch Whisky Tariffs: China, India & US Market Outlook

Global Trade Deals Reshape the Landscape: Analyzing the 2026 Scotch Whisky Export Outlook

Scotch Whisky export trade is undergoing significant tariff changes. According to the latest trade agreements, China has agreed to halve the import tariff on Scotch from 10% to 5%, expected to take effect in early 2026. This change was facilitated by UK Prime Minister Keir Starmer during his visit to Beijing. For China, currently the world's tenth-largest export market for Scotch, this move significantly enhances market attractiveness.

Scotch Whisky Association CEO Mark Kent stated that China is a priority growth market, where local consumers have a growing appreciation for high-quality Scotch. The industry is working with the government to implement tariff policies as soon as possible. However, Scotch still faces challenges in other key markets. For example, the USA was embroiled in a trade dispute during the Trump administration in 2019, resulting in a 25% retaliatory tariff that caused Single Malt Scotch exports to plummet.

Although this tariff is currently suspended and remains at 10% during the grace period, the relevant agreement will expire in mid-2026. If both parties fail to reach a permanent solution by then, high tariffs could return, adding uncertainty to this most valuable export market.

Historic Breakthrough in the Indian Market

In the India market, Scotch is experiencing a historic breakthrough. Although India is the world's largest whisky consumer, it has historically been dominated by locally produced Indian Made Foreign Liquor (IMFL). Following the 2025 signing of the UK-India FTA, the 150% federal tariff imposed by India on Scotch will immediately drop to 75% and gradually decrease to 40% over ten years. Mark Kent described this as a "once-in-a-generation" milestone.

Meanwhile, local spirits giant Radico Khaitan has expressed interest in investing in Scotch production. Additionally, some markets have achieved trade stability. Through the UK-Australia FTA signed in 2021, Australia has completely abolished Scotch tariffs; Japan and the EU also maintain zero tariffs under current trade frameworks.

While Mercosur countries like Brazil still maintain a tariff of about 20%, the Scotch industry as a whole is committed to securing a more stable and open trade environment globally to navigate the rapidly changing global economic situation.

📅 Published: 2026-01-30

🔗 Source: https://thewhiskeywash.com/whiskey-articles/will-your-favorite-scotch-get-cheaper-the-global-tariff-shake-up-explained/