Could Scotch whisky be exempted from US tariffs?

In this episode, after his whirlwind visit last week to meet US President Donald J Trump at the White House, Scotland's First Minister John Swinney joins John Beattie to discuss the prospects of a deal on US tariffs on Scotch whisky.

Ten percent US tariffs are costing the Scotch whisky industry £4 million a week, Mr Swinney says.

But Scotland, he adds, imports $300 million worth of Kentucky bourbon barrels every year. And tariffs are having an impact on that trade too.

"I'd also had the fortunate position to meet with one of the cask producers in Kentucky before I met Mr Trump," Mr Swinney explains. "And he was telling me that he was already having orders cancelled from Scottish distilleries. So the real life effect of the tariffs is having an effect in America already."

It's a story that's been picked up by The New York Times, which reported on 15 September 2025 that "if 10 percent tariffs persist, the United States will lose 3,300 jobs and the US hospitality industry would lose $300 million according to the Distilled Spirits Council [of the United States]."

One of the Scottish distilleries The Times mentioned was Kilchoman Distillery on Islay (featured in Episode 8), which imports 60 percent of its barrels from Kentucky.

So a deal, Mr Swinney says, would be "a win-win": "It's also not a deal that causes any other collateral implications because Scotch whisky can only be produced in Scotland. Kentucky bourbon can only be produced in Kentucky. So there's no transfer of trade that can be involved. But there is an economic benefit for both sides of the pond if we get this right."

But what was it like pitching a proposal to the most powerful man on the planet in the most well-known office in the world?

"I had to know my onions about my proposal because he was questioning me. It was a questioning experience."

But in essence, Mr Swinney says, "I was saying, 'Here's a deal which will benefit the Scotch whisky industry, yes, but it'll also benefit the distilling industry in the United States'."

So will there be a deal?

"I think there's an attractive proposition there. The question is, will we pull it off? And well, we'll get an answer to that in due course."

Slàinte!

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Creator & producer: David Holmes

Art work & design: Jess Robertson

Music: Water of Life (Never Going Home)

Vocals: Andrea Cunningham

Guitars: John Beattie

Bass: Alasdair Vann

Drums: Alan Hamilton

Bagpipes: Calum McColl

Accordion: Gary Innes

Music & Lyrics: Andrea Cunningham & John Beattie

Recorded & mixed by Murray Collier at La Chunky Studios, Glasgow, Scotland

Special thanks: The Piper Whisky Bar, 57 Cochrane Street, Glasgow, Scotland

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