Irish Whiskey Association warns of cross-border tariff disparity after Trump announcement

A promised rollback of US tariffs on Scotch whisky has raised hopes — and fresh uncertainty — for Irish distillers, as the Irish Whiskey Association (IWA) called for a broader return to duty-free spirits trade across the Atlantic.

In a statement, the IWA, which represents whiskey producers across the island of Ireland, said it welcomed “any move towards restoration of tariff-free transatlantic spirits trade” after US President Donald Trump announced he would remove tariffs on Scotch Whisky imports.

The group said it shares “the goal of the US distilling industry – return to the zero-for-zero regime that built our sector together and hope to see this extended to all spirits categories”.

“The fundamentals that underpin the decision to remove tariffs on Scotch Whiskey equally apply to Irish spirits trade with the US,” the association said.

“Just as the Scotch Whisky and Kentucky Bourbon sectors enjoy close cooperation and cross-investment, so too does the Irish Whiskey sector.

With reports suggesting the lifting of the Scotch Whisky tariff could also cover Irish Whiskey produced in Northern Ireland, the IWA stressed that Irish Whiskey “is a single GI [geographical indication] covering the whole island of Ireland”.

Eoin Ó Catháin, Director of the IWA, told RTÉ’s News at One that it is the association’s “understanding” that the move will lead to “tariff liberalisation for Irish Whiskey produced in Northern Ireland”.

But he said the timing remains “all very unclear,” and warned it could create a “disparity” between producers in Ireland and Northern Ireland.

Such an outcome, he said, would be “unfortunate” if it comes to pass and is something the Irish Whiskey Association, an All-Ireland body, has been “seeking to avoid” throughout the long-running tariff uncertainty.

A spokesperson for the Department of Foreign Affairs and Trade said the Government continues to press strongly for lower tariffs on Irish Whiskey in talks with US and EU partners.

The department said the minister had taken note of the US president’s statement following King Charles’s recent visit to the US regarding whiskey tariffs.

It added that officials were also aware of a statement from the US Trade Representative indicating that the commitment would be delivered within the framework of the economic prosperity deal between the UK and the US.

According to the department, there has been no immediate change to tariff schedules, and both Irish and Scotch whiskies remain subject to a 10% tariff under section 122 tariffs announced on 2 April.

It said efforts to secure reduced tariffs on Irish Whiskey would continue, including through every available channel and opportunity.

Mr Ó Catháin said the IWA has been in contact with the Irish Government and the European Commission and that “we understand that the zero-for-zero for spirits producers, for Irish whiskey, for Irish cream [liqueur] … remains a priority for them.

“Perhaps the gate has been opened and perhaps then we can try and see if we can get through.

“We’re all adopting a wait and see approach but we’re hoping that this is the first step in a return to a positive trading relationship,” he said.

Trump to remove scotch levy ‘in honour’ of King Charles

US President Donald Trump hosted King Charles at the White House this week

US President Donald Trump said yesterday that he will remove tariffs on Scottish whisky after hosting Britain’s King Charles and Queen Camilla.

Trump pointed to the Scotch sector’s ties with the American bourbon industry and to the significance of the royal visit to the White House this week. Most Scotch producers source their casks from the US.

Mr Trump said that although “people have wanted to do this for a long time” the King and Queen “got me to do something that nobody else was able to do”.

The Scottish and UK governments had been urging Mr Trump to scrap the tariffs, with the US remaining the largest overseas market for Scotland’s whisky.

The US is also the biggest market for Irish whiskey, which is currently subject to a 10% tariff in line with other EU spirits exports.

Scottish First Minister John Swinney had previously travelled to the White House to make the case directly to the president after talks during Mr Trump’s visit to Scotland last year.

Confirming the move, Mr Trump wrote on his Truth Social platform: “In honor (sic) of the King and Queen of the United Kingdom, who have just left the White House, soon headed back to their wonderful Country, I will be removing the Tariffs and Restrictions on Whiskey having to do with Scotland’s ability to work with the Commonwealth of Kentucky on Whiskey and Bourbon, two very important Industries within Scotland and Kentucky.

“People have wanted to do this for a long time, in that there had been great Inter-Country Trade, especially having to do with the Wooden Barrels used. The King and Queen got me to do something that nobody else was able to do, without hardly even asking!

Mr Swinney described the decision as “tremendous news for Scotland”.

He said: “As First Minister, I have made it my mission to do everything possible to lift US tariffs on our whisky.

“People’s jobs were at stake. Millions of pounds were being lost every month from the Scottish economy.

“Yet despite this, and despite months of trade talks, it was obvious to me that the UK government had done little to raise the issue of Scotch whisky, and the US president was not aware that there was an issue until he came here to Scotland.

“By meeting the president during his visit to Scotland and by going to Washington, to the Oval Office, we made Scotland’s case. We worked directly with the Scotch Whisky Association to get Scotland’s voice heard.

“And, we used every chance to drive our point home, not least the State Banquet hosted by His Majesty The King in London last September.”

Mr Swinney said that “hard work” had “paid off” and thanked the president “for listening and acting to lift the tariffs”.

He also said Scotland was “grateful” to the King for the “key role he played in this tremendous success”.

“Scotland needs a government that is always on Scotland’s side,” he added.

“It needs experienced leadership that is focused on delivering and knows how to get things done at the very highest level.

“That is what we offer and today shows how important it is.”

Business and trade secretary Peter Kyle said: “This is great news for our Scotch whisky industry, which is worth almost £1 billion [€1.16m] in exports and supports thousands of jobs across the UK.

“I have been advocating for lower tariffs on key exports like whisky to protect vital jobs and iconic British brands while strengthening our relationship with the US.”

Whiskey producers in Ireland remain uncertain about what Mr Trump’s decision to lift the tariff on Scotch whisky will mean for the Irish whiskey industry.

Industry sources said they are still trying to establish the detail, though some fear that once the change is formally confirmed it may apply to Irish whiskey produced in Northern Ireland but not in the Republic.

The full effect of the move is not expected to become clear until an executive order setting out the tariff reduction is published.