China Cuts Whisky Tariffs in Move to Boost UK Exports After Starmer’s Beijing Visit

China has announced a reduction in import tariffs on whiskies produced in the United Kingdom, including Scotch, following a visit by UK Prime Minister Keir Starmer to Beijing. The Chinese Ministry of Finance stated that starting February 2, a provisional import tariff rate of 5% will apply to whisky, down from the previous 10%. This change comes after bilateral talks between Prime Minister Starmer and Chinese President Xi Jinping on January 29.

The UK government said the tariff cut is expected to generate £250 million ($344.4 million) for the UK economy over the next five years. The move is aimed at helping Scottish distillers and other UK whisky producers compete more effectively in China, which is considered one of the world’s fastest-growing consumer markets.

The Scotch Whisky Association (SWA) welcomed the decision. Mark Kent, chief executive of the SWA, said that China is a priority growth market for many Scotch whisky producers. He noted that the country has developed into a knowledgeable and premium-focused market with a strong appreciation for Scotch. Kent added that lowering the tariff from 10% to 5% could re-energize exports to China.

According to SWA data, China was the tenth-largest market for Scotch whisky by value in 2024. Exports reached £161 million that year, representing a 31.5% decline compared to 2023. However, export sales have grown 81.4% since 2019. In terms of volume, China also ranked tenth in 2024, with shipments totaling 30 million bottles—a decrease of 1.7% from the previous year but an increase of 77.3% since 2019.

The tariff reduction applies to all whiskies produced in the UK and does not extend to other exports. Industry leaders believe this measure could help reverse recent declines in sales and volumes. Stephen Davies, CEO of Welsh whisky producer Penderyn Distillery, said his company has faced challenging trading conditions in China over the past year but welcomed any reduction in trading costs. He expressed hope that the market would eventually recover to levels seen two years ago.

The English Whisky Guild has also been approached for comment on the development.

This agreement follows another trade deal signed by the UK with India last year, which halved tariffs on whisky and gin from 150% to 75%, with further reductions planned over ten years.

Industry analysts say that while immediate gains may be modest due to current market conditions in China, the tariff cut positions UK whisky producers for stronger growth as consumer demand recovers. The Chinese market remains important for premium spirits brands seeking long-term expansion outside Europe and North America.