Trump scraps Scotch whiskey tariffs ‘in honor’ of King Charles

US President Donald Trump on Thursday repealed tariffs on a key British export following a state visit by King Charles III and Queen Camilla, helping to improve transatlantic ties that have been hit by a series of political standoffs.

“In honor of the King and Queen of the United Kingdom, who have just left the White House and returned to their wonderful country, I will be lifting the tariffs and restrictions on whiskey, which has to do with Scotland’s ability to work with the Commonwealth of Kentucky on whiskey and bourbon, two very important industries for Scotland and Kentucky,” the president said in a Thursday Truth social post.

“People have wanted to do this for a long time, there was great inter-country trade, especially related to the use of wooden barrels. The King and Queen asked me to do something that no one else could do, without even asking!” He added.

Trump later told reporters that he had “lifted all restrictions so Scotland and Kentucky can get back to business.”

“And I did it in honor of the king and queen who just passed away,” he said.

The UK government confirmed to CNBC on Friday that the changes announced the previous day will apply to all whiskey tariffs, including Irish whiskey.

Last year, Britain became the first country in the world to strike a trade deal with the Trump administration after the president unveiled the so-called Emancipation Day tariffs. The terms of the UK deal included a blanket tariff of 10% on goods imported into the United States.

This meant that the zero-tariff trading environment that already existed for exporters on both sides of the Atlantic was eliminated, placing new tariffs on Scotch whiskey and other spirits shipped from Britain to the US.

The Scotch whiskey industry employs approximately 40,000 people in Scotland, where whiskey accounted for 23% of all goods exports in 2025. The region is also a major buyer of used bourbon barrels from the United States.

Scottish and UK government officials had lobbied for a return to zero-to-zero tariff conditions on spirits exports, which the Scotch Whiskey Association said in September was causing its members to lose £4 million ($5.44 million) a week in exports.

Scotland’s First Minister John Swinney, who leads the devolved government in Edinburgh, said in a statement after Trump’s announcement that he had made it his mission to “do everything possible to lift the US tariffs on our whiskey”.

“People’s jobs were at stake,” he said. “The Scottish economy was losing millions of pounds every month… I thank the President for listening and taking action to remove the tariffs. And Scotland is grateful to His Majesty the King for the vital role he played in this tremendous success.”

If an agreement was not reached with the White House, the whiskey industry also faced the prospect of tariffs on single malts returning to 25% in the coming months, as a five-year suspension on those tariffs was set to expire.

In a statement on Thursday, Scotch Whiskey Association CEO Mark Kent said the US is the industry’s most valuable export market.

“Distillers can breathe a little easier during a period of significant pressure on the sector,” he said. “For months, many have worked tirelessly to return zero-to-zero tariff trade for whiskey and bourbon. This announcement will once again strengthen the special relationship between Scotch whiskey and the American whiskey industries.”

The king and queen concluded a four-day state visit to the United States on Thursday, which included a series of events in Washington, DC, including an address by the king to a joint meeting of Congress and a state dinner hosted by the president and first lady.

King Charles received a standing ovation in Congress after a speech extolling the value of the so-called transatlantic “special relationship”, calling on Britain and the US to unite in an “unstable and dangerous” era.

“The challenges we face are too great for any one nation to bear alone,” he said, before reminding Congress that he was not prepared to do so.

Prime Minister Keir Starmer’s relations with Trump soured in recent weeks, as the president raised the issue of the UK government’s actions against its interest in Greenland and its request for aid in Iran.

Earlier in his second term, Trump had described Starmer as a friend, despite their political differences, and said Britain was protected from the brunt of his trade policies “because I like him.”

Many viewers credited King Charles with saving the “special relationship” from danger during his four-day visit this week.

After Tuesday’s state dinner, Trump labeled the king a “great friend”, telling reporters: “When you like the king of a country that much, it probably helps your relationship with the prime minister.”

Buckingham Palace said in an emailed statement Friday morning that the king had been informed of Trump’s “warm gesture” and “expresses his heartfelt gratitude for this decision which will make a significant difference to the British whiskey industry and the livelihoods it supports.”

“Her Majesty will present a play in recognition of the President’s thoughtfulness and generous hospitality as she departs from the United States,” a palace spokesperson said.

Matthew Barzun, who served as U.S. ambassador to Britain under President Barack Obama, told CNBC’s Tania Bryer on Thursday that King Charles’s so-called soft power “Certainly the reservoir of trust, respect, and understanding between Britain and the United States grew.

He said, “The job of diplomacy or a diplomat is to leave the stock a little higher than you found it.” “It diminishes over time, and sometimes you get big shocks to the system, and you lose a lot of trust, respect and understanding. In that context, I think there were very quantifiable benefits of this trip. I think the reserves were increased. It’s higher than it was the week before, and that’s significant.”