China cuts import tariffs on UK whisky to 5% after trade talks with Britain 

CHINA – China has agreed to reduce import tariffs on UK whiskies to 5% following trade discussions between Beijing and London, a move expected to support Scotch whisky exports to one of the world’s fastest-growing consumer markets. 

In a statement issued this week, China’s Ministry of Finance said “a provisional import tariff rate of 5% will be applied to whisky” effective February 2. The UK government confirmed the decision, stating that tariffs on Scotch whisky had been reduced from 10% to 5%. 

Beijing had initially set a provisional 5% tariff rate on whisky imports in 2017 but removed the provision for 2025, effectively increasing the duty to 10%. The latest agreement reverses that increase. 

In its statement, the UK government said it expects the tariff reduction to generate £250 million ($344.4 million) for the UK economy over the next five years. It added that the move “will help Scottish distillers compete more effectively in one of the world’s fastest-growing consumer markets”. 

China was the tenth-largest market for Scotch whisky by value in 2024, according to the Scotch Whisky Association (SWA). Exports to the country were valued at £161 million (US$221.7 million) last year, representing a 31.5% decline compared with 2023. However, compared with 2019, Scotch whisky exports to China have grown by 81.4%, the association said. 

Mark Kent, chief executive of the SWA, welcomed the agreement, saying: “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.” 

China was also the tenth-largest market for Scotch whisky by volume in 2024. Export volumes fell 1.7% year on year to 30 million bottles, but shipments to the market have increased by 77.3% since 2019, according to SWA data. 

Welsh whisky producers also welcomed the move. Stephen Davies, chief executive of Penderyn Distillery, told Just Drinks: “Penderyn has done a lot of business in China over the last few years although, over the last 12 months in particular, trading has been very difficult.” 

“We welcome any reductions in the cost of trading for our domestic or export markets, so from that point of view it’s good news, although I believe it will take quite a while for the market for whiskies in China to improve and perhaps get back to the levels they were at maybe two years ago,” Davies added. 

The China agreement follows a separate trade deal signed between the UK and India last year, which cut tariffs on whisky and gin from 150% to 75%, with duties set to fall further to 40% by the tenth year of the agreement. 

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