China has agreed to halve its tariffs on Scotch whisky in a move which is set to allow distillers to compete more effectively in this fast-growing market (Scotch whisky’s tenth-largest by value).

Yesterday, after a conversation with UK Prime Minister Keir Starmer, Chinese president Xi Jinping agreed to drop tariffs from 10% to 5%. 

The deal, according to government, is set to add £250m to the UK economy over the next five years. 

On the deal, Starmer said: “Our whisky distilleries are the jewel in Scotland’s crown. 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.” 

Meanwhile, Mark Kent, CEO of the Scotch Whisky Association, added: “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.”