The UK Government has announced that it has secured a significant win for Scotland’s whisky industry, with China agreeing to cut tariffs on Scotch whisky from 10 per cent to 5 per cent.

The deal, signed during the Prime Minister’s visit to Beijing this week, is expected to be worth £250 million to the UK economy over the next five years. China is currently Scotch whisky’s tenth-largest market by value, and the tariff reduction will help Scottish distillers compete more effectively in one of the world’s fastest-growing consumer markets.

Commenting on the news, Keir Starmer, UK Prime Minister, said: “Our whisky distilleries are the jewel in Scotland’s crown. Having already slashed tariffs on whisky exports to India, we’re now doing the same with China — proof that our pragmatic, hard-headed international engagement delivers real benefits at home.”

Mark Kent, Chief Executive of the Scotch Whisky Association, added: “China is a priority growth market for many Scotch whisky producers and, in recent decades, has developed into a knowledgeable, premium-focused market with a strong appreciation of Scotch. The proposed tariff reduction from 10 per cent to 5 per cent has the potential to re-energise exports to this important market. We are very grateful to the Prime Minister and officials on both sides for this welcome development, and we look forward to working with the UK Government on the rapid implementation of the tariff reduction as part of wider efforts to improve competitiveness across Scotch whisky’s global markets.”

The announcement follows the landmark UK–India trade deal, which slashed Indian import tariffs on Scotch whisky and is expected to increase exports to India by up to £1 billion a year. That agreement alone is forecast to boost the Scottish economy by £190 million annually.