China has cut its whisky tariff from 10 per cent to 5 per cent from today, following talks between UK Prime Minister Keir Starmer and President Xi Jinping in Beijing. The move is projected to be worth around £250 million to UK exporters over the next five years.
China imported USD445.5 million of whisky in 2025, 84 per cent of it from the UK, underlining Scotch’s dominance in the market. In 2024, China was the tenth largest export market for Scotch, while Asia–Pacific remained its biggest region by value.
Reacting to the news, Paul Kopec, CEO of leading whisky asset management firm Speyside Capital, says:
“The reduction in tariffs on Scotch whisky from 10% to 5% is a significant diplomatic win and a meaningful signal at a time when global trade conditions remain unpredictable. While a 5% swing may sound relatively modest to some, in premium spirits even small tariff reductions can have a significant impact on pricing, distribution appetite, and long-term market confidence.”
“China has the world’s second-largest economy by nominal GDP, and remains strategically important. It’s a premium-led, status-driven market where Scotch whisky is consumed as a symbol of heritage, success and international credibility. Lower tariffs like those announced today make it easier for brands to invest, build presence, an commit to the market over the long term.
“What’s also encouraging to those of us in the industry is the broader pattern this fits into. We’re seeing tariff barriers fall in some of the world’s most important growth regions at the same time as supply of aged Scotch remains fundamentally constrained. Production cannot be accelerated, stock cannot be created overnight, and that imbalance continues to underpin long-term value across the category.
“When you view China’s move alongside the UK-India trade deal, the direction of travel is clear. Asia is becoming structurally more accessible, and while global demand for premium and ultra-premium Scotch decreased in 2025, these small things can spur growth. For distillers, that supports export increases. For investors, it reinforces why mature whisky stock remains such a resilient, globally diversified asset.
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“Scotch whisky is often caught up in the crossfire of geopolitics, so it’s refreshing to see a trade decision that actively removes friction rather than adds it. Stability and access matter enormously in an industry that plans decades – rather than quarters – ahead.”
The tariff cut follows China’s agreement last year to tighten labelling requirements for Scotch to tackle counterfeiting and tampering. Together, the measures are seen as improving both the competitiveness and protection of Scotch whisky brands in a strategically important growth market.
