Trump lifts his tariff on spirits to help Kentucky, Scotland at behest of king
Published in Political News
Shares in spirits companies rose on Thursday after President Donald Trump announced he is lifting the 10% tariffs on alcohol sales between the United Kingdom and the U.S.
The move came at the behest of King Charles III and Queen Camilla, according to Trump’s post on Truth Social.
“In honor of the King and Queen of the United Kingdom, who have just left the White House, soon headed back to their wonderful Country, I will be removing the Tariffs and Restrictions on Whiskey having to do with Scotland’s ability to work with the Commonwealth of Kentucky on Whiskey and Bourbon, two very important Industries within Scotland and Kentucky,” Trump said. “People have wanted to do this for a long time, in that there had been great Inter-Country Trade, especially having to do with the Wooden Barrels used. The King and Queen got me to do something that nobody else was able to do, without hardly even asking! A wonderful Honor to have them both in the U.S.A. President DONALD J. TRUMP”
Trump imposed 10% across-the-board tariffs for 150 days on imports in February after the Supreme Court struck down his previous trade measures.
U.S. Sen. Mitch McConnell, R-Ky., praised Trump’s move, saying in a statement, “With the 152nd running of the Kentucky Derby this Saturday, the President’s decision to roll back tariffs on bourbon and whiskey is timely and welcome news. Ninety-five percent of the world’s bourbon is produced in the Commonwealth and the industry employs more than 23,000 hardworking Kentuckians.
“This move will give businesses the certainty they need to increase investment in Kentucky’s economy. After more than a year of looming high prices and increased costs, Kentucky’s bourbon industry and the consumers that support it can be hopeful for the future.”
Shares in Brown-Forman, the maker of Jack Daniel’s Tennessee Whiskey, which is the biggest selling American whiskey, were up 3.62% at close of markets on Thursday, while other publicly traded spirits companies also rose, including Diageo, maker of Bulleit Bourbon; Davide Campari, maker of Wild Turkey; and MGP Ingredients, a contract distiller for many brands.
The Distilled Spirits Council of the U.S., which had been lobbying for a return to zero for zero tariffs, also hailed the news.
“We were very pleased to see President Trump’s Truth Social post. The removal of the 10% tariff on U.K. whisky would be a major victory for American hospitality businesses that are deeply impacted by international trade. ... This action strengthens transatlantic ties, brings much‑needed certainty to our industry and allows spirits producers on both sides of the Atlantic to grow, invest and support jobs at a critical time,” said Chris Swonger, Distilled Spirits Council President & CEO in a statement.
The spirits industry has been impacted by Trump’s trade war, which has hurt bourbon sales to some of the biggest markets. Whiskey exports were down $250 million in 2025.
Canada has largely boycotted American spirits for more than a year after Trump threatened to annex the country.
Brown-Forman has been particularly hurt by a huge decline in the sale of used bourbon barrels to Scotland, where they are repurposed for aging Scotch.
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