Scotch whisky exports fall as tariffs and rising costs hit producers

Scotch whisky exports dipped in 2025 as the industry confronted a difficult trading landscape, marked by President Donald Trump’s US tariffs, softening global demand and mounting domestic costs.

Figures released by the Scotch Whisky Association (SWA), a Prosper member, show export value falling by 0.6 per cent to £5.36 billion, while volumes declined by 4.3 per cent, equivalent to 1.3bn bottles.

The downturn follows a subdued 2024, when exports slipped by 3.7 per cent in value but rose in volume. The industry now faces acute pressure in several key markets, most notably in the US, its single most valuable destination.

The imposition of a 10 per cent tariff in April last year has contributed to a 9 per cent fall in export volume across the full year, and a sharper decline of seven per cent in value and 15 per cent in volume between May and December. Exports to the US totalled £933 million in 2025, down four per cent, with volumes falling to 120 million bottles.

The SWA has urged the UK Government to secure the return of zero tariff trade, an issue raised directly with President Trump by both the prime minister, Keir Starmer, and the first minister, John Swinney. The sector also faces the prospect of tariffs rising to 35 per cent in July, coinciding with the expiry of a five year suspension of the previous 25 per cent single malt tariff, which cost producers more than £600 million in lost exports between 2019 and 2021.

While business in India continued its rapid growth – up 15 per cent to £286m and retaining its position as the largest volume market at 250m bottles – gains in newer regions were overshadowed by weakness elsewhere. Exports to Singapore, Taiwan and China all slipped in value, despite China’s recent halving of its whisky tariff to five per cent.

At home, distillers are contending with rising costs, including duty increases and new packaging requirements. Some sites have paused or reduced production, and jobs have been lost in parts of the supply chain.

Mark Kent, chief executive of the SWA, said the industry was facing strain “not felt for decades”. He added: “Support is vital to weather the storm. Finalising a deal to return zero tariff trade to the US, vigorously pursuing new trade agreements, and avoiding further domestic tax rises must be immediate priorities.”

He said the industry’s long term prospects remained strong, but that government action was needed ‘to boost and sustain growth for Scotch whisky and the wider economy.’