China to cut tariffs on Scotch whisky to 5%
China agreed to reduce tariffs on Scotch whisky from 10% to 5%, following talks between the British Prime Minister, Keir Starmer, and the Chinese President, Xi Jinping, in Beijing, Agenzia Nova reported.
The measure is expected to generate 250 million pounds or $345.4 million in value for British exporters over the next five years, according to a statement from the British Prime Minister's office.
Starmer discussed reducing whisky tariffs with Xi while seeking to achieve positive economic outcomes.
The Scotch whisky industry is a major export for the UK, promoted in trade agreements. A free trade agreement with India, signed last year, reduced tariffs from 150% to 75%, with a further reduction to 40% within the next decade.
However, efforts to reduce or exempt the industry from US tariffs have not yet been successful.
In 2024, China was the tenth-largest export market for Scotch whisky, according to data from the Scotch Whisky Association, which also shows that Asia-Pacific is the largest regional market by value.
Earlier, it was reported that U.S. President Donald Trump said that he's raising "reciprocal" tariffs and auto duties on South Korea to 25 percent from 15 percent as he argued the Asian ally's legislature has not yet completed a domestic process to implement a bilateral trade deal.