FX.co ★ U.S. Considers Easing UK Whisky Tariffs, Trump Eyes Rebate Checks

The United States is contemplating the reduction of tariffs on imported UK whisky in an effort to avert retaliatory duties on American bourbon and to assist U.S. distillers who provide used oak barrels to UK producers. According to Bloomberg News, discussions are underway regarding possible tariff exemptions for UK whisky, which currently faces a 10% import tax. This tax results in £20 million per month in lost exports for UK distillers, as reported by the Scotch Whisky Association. Approximately 60% of UK scotch is matured in barrels sourced from Kentucky, underscoring the reciprocal advantages of this trade relationship. The initiative seeks to mitigate tensions and foster collaboration within the whisky industry. Although the U.S.-UK trade agreement in May exempted certain sectors, it left whisky subject to taxation. Additionally, President Trump announced on Thursday that his administration is considering issuing rebate checks to American taxpayers, funded by the revenue generated from the newly imposed tariffs.