China to cut tariffs on Scotch whisky after Prime Minister secures deal

China has agreed to cut tariffs on Scotch whisky in half following the Prime Minister’s latest trade deal.

The deal was signed on Thursday during Keir Starmer’s visit to Beijing.

It will see tariffs on the Scotch whisky industry cut from 10% to 5%, and the Prime Minister has said it will be worth £250m to the UK economy over the next five years.

China is currently whisky’s tenth-largest market by value.

The Prime Minister said the new tariff reduction will help Scottish distillers compete more effectively in one of the world’s fastest-growing consumer markets.

“Our whisky distilleries are the jewel in Scotland’s crown,” Starmer said.

“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 brings benefits at home.”

Secretary of state for scotland Douglas Alexander said the new whisky deal is a “tremendous result” for Scotland’s whisky industry.

“Just months ago, we secured a trade deal with India, transforming the prospects for Scotch in the world’s largest whisky market. Now we have delivered again in China,” Alexander said.

“The message is clear: with the strength and support of the UK Government behind them, Scotland’s finest products can reach every corner of the globe. We will keep fighting for Scottish businesses and Scottish jobs.”

The new deal with China has comes after Starmer struck a landmark trade deal with India in July 2025.

The UK-India trade deal saw tariffs on whisky cut from 150% to 75% – potentially dropping to 40% in the next decade.