Tariffs on Scottish whisky exports to China will be cut in half from 10 percent to 5 percent starting Monday, Prime Minister Sir Keir Starmer announced during his trip to Beijing. The reduction follows a new trade deal struck during discussions between Starmer and Chinese officials, which the UK government said could add £250 million to the British economy over the next five years.
Scotch whisky is one of Britain’s most valuable drinks exports, generating over £5 billion annually. China has become one of the fastest-growing markets for the spirit, and industry experts said the tariff cut will give Scottish distillers a competitive edge in a crowded global market that includes American, European, and Japanese competitors.
“This is hugely good news for the whisky sector back home,” Starmer told BBC journalist Chris Mason. “Along with the deal we did with India, this translates into money, wealth and jobs back in the United Kingdom.” He said the Monday start date demonstrated the “speed in which” his government is delivering immediate benefits for British businesses.
The deal comes after a separate agreement with India that also reduced tariffs on Scotch whisky. China is currently the tenth-largest market for the product by value, and Scottish producers are expected to benefit directly from the lower import costs.
Industry groups welcomed the announcement. Mark Kent, chief executive of the Scotch Whisky Association, described China as a “priority growth market” for many distilleries, noting that it has developed into a premium-focused market with a strong appreciation for Scotch. Kent said he looked forward to working with the UK government to ensure the tariff reduction is implemented quickly and to enhance competitiveness in other international markets.
Charandeep Singh, chief executive of the Scottish Chambers of Commerce, said the tariff cut would allow Scottish distillers to “leverage this demand” and strengthen their position in China. First Minister John Swinney called the move “very welcome news,” noting that China has become a vital market for Scotch whisky exports over the past five years.
Starmer’s trip also secured an agreement for visa-free travel to China for UK citizens visiting for less than 30 days. This arrangement, which will apply to both business and tourist travel, brings the UK in line with 50 other countries, including France and Germany, although the exact start date is yet to be confirmed.
The UK and China also agreed to cooperate on disrupting migrant-smuggling networks, a key priority for Starmer’s government. The prime minister defended his visit to China amid some criticism, saying it would be “foolhardy to sit with your head in your hands and refuse to engage” with the country.
The tariff reduction is expected to immediately boost Scottish whisky sales in China and support the wider UK drinks sector, signalling strong government backing for one of Scotland’s flagship industries.
