Pernod Ricard has welcomed the return of tariff-free access for Scotch whisky in the United States, with the drinks group urging negotiators to extend similar treatment to other spirits categories. The United States has restored tariff-free access for whisky produced in the UK, removing the 10 per cent levy that had placed additional pressure on Scotch producers and importers.
The measure forms part of the continuing implementation of the UK-US Economic Prosperity Deal. US Trade Representative Jamieson Greer confirmed that the United States would grant preferential duty access to UK-produced whisky, alongside preferential treatment for other British and American goods.
The decision is an important commercial boost for Scotch whisky producers. The US is the category’s largest export market by value, accounting for close to £1 billion in annual trade. Scottish government figures put exports to the country at approximately £933 million, although shipments had fallen by 4% in value and more than 9% in volume compared with 2024.
Nodjame Fouad, CEO of Pernod Ricard’s Aged Spirits and Champagne division, said the removal of the tariff would support both consumer access and the wider transatlantic drinks trade. The return to tariff-free trade for Scotch whisky between the UK and US – the world’s most valuable Scotch whisky market – is very welcome news for the industry.
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This move will improve access for American consumers to iconic Scotch whiskies such as The Glenlivet, while supporting businesses at home, and strengthening the long-standing trading relationship between the UK and US spirits industries. Fouad leads the group’s Gold Brand Unit, which brings together Chivas Brothers, Irish Distillers, Martell Mumm Perrier-Jouët and its North American distilling operations.
Pernod Ricard now hopes to see further progress made towards the removal of tariffs affecting other spirits and wine categories – including Irish Whiskey, Champagne and Cognac – to deliver benefits for consumers, producers and hospitality businesses on both sides of the Atlantic. The exemption could ease cost pressures throughout the supply chain, from Scottish distilleries and exporters to US importers, distributors, retailers, bars and restaurants.
The Scotch Whisky Association described the measure as a significant boost for distillers and said it would help restore the “zero-for-zero” model that previously supported trade between the Scotch whisky and American whiskey industries. Those industries are closely connected, with millions of used bourbon barrels exported from Kentucky to Scotland each year.
Attention will now turn to whether the Scotch exemption can provide a template for broader tariff relief. Irish whiskey producers have also called for a return to tariff-free transatlantic spirits trade, arguing that the commercial principles supporting the Scotch decision apply equally to Irish products.
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Extending tariff-free treatment would reduce uncertainty for producers while supporting choice and affordability for American consumers.
It could also offer relief to the US hospitality sector, which ultimately carries many of the additional costs and supply complications created by tariffs.
The industry argues for wider tariff relief, and the US and UK will likely continue to negotiate the terms of their trade agreement, with the goal of reducing trade barriers and supporting the growth of the spirits industry on both sides of the Atlantic.
They will work to support the growth of the spirits industry.
