The return of tariff-free access for Scotch whisky in the United States has been welcomed by Pernod Ricard, although the drinks group is urging negotiators to extend similar treatment to Irish whiskey, Champagne and Cognac.

The United States has restored tariff-free access for whisky produced in the UK, removing the 10 per cent levy that had placed additional pressure on Scotch producers and importers in their most valuable overseas market.

The measure forms part of the continuing implementation of the UK-US Economic Prosperity Deal. US Trade Representative Jamieson Greer confirmed that the United States would grant preferential duty access to UK-produced whisky, alongside preferential treatment for other British and American goods.

The decision represents an important commercial boost for Scotch whisky producers. The US is the category’s largest export market by value, accounting for close to £1 billion in annual trade. Scottish government figures put exports to the country at approximately £933 million, although shipments had fallen by 4% in value and more than 9% in volume compared with 2024.

Nodjame Fouad, CEO of Pernod Ricard’s Aged Spirits and Champagne division, said the removal of the tariff would support both consumer access and the wider transatlantic drinks trade.

“The return to tariff-free trade for Scotch whisky between the UK and US – the world’s most valuable Scotch whisky market – is very welcome news for our industry.

“This move will improve access for American consumers to iconic Scotch whiskies such as The Glenlivet, while supporting businesses at home, and strengthening the long-standing trading relationship between the UK and US spirits industries.

“We now hope to see further progress made towards the removal of tariffs affecting other spirits and wine categories – including Irish Whiskey, Champagne and Cognac – to deliver benefits for consumers, producers and hospitality businesses on both sides of the Atlantic.”

For Pernod Ricard, the decision provides relief for one part of a premium portfolio that spans several major drinks-producing regions. Fouad leads the group’s Gold Brand Unit, which brings together Chivas Brothers, Irish Distillers, Martell Mumm Perrier-Jouët and its North American distilling operations. Its brands cover Scotch, Irish and American whiskey, as well as Cognac, Champagne and wine.

The exemption could ease cost pressures throughout the supply chain, from Scottish distilleries and exporters to US importers, distributors, retailers, bars and restaurants. It also gives producers greater certainty when planning investment, stock allocations and marketing activity in the American market.

The Scotch Whisky Association described the measure as a significant boost for distillers and said it would help restore the “zero-for-zero” model that previously supported trade between the Scotch whisky and American whiskey industries.

Those industries are closely connected. Millions of used bourbon barrels are exported from Kentucky to Scotland each year, where they are used to mature Scotch whisky. Political and industry leaders have argued that reducing trade barriers therefore benefits producers and supporting businesses in both countries rather than favouring one side of the Atlantic.

Attention will now turn to whether the Scotch exemption can provide a template for broader tariff relief. Irish whiskey producers have also called for a return to tariff-free transatlantic spirits trade, arguing that the commercial principles supporting the Scotch decision apply equally to Irish products.

Fouad’s comments underline the limits of a category-specific agreement for international drinks companies. While Scotch producers now have improved access to the US, tariffs affecting European wine and spirits continue to place pressure on categories such as Irish whiskey, Champagne and Cognac.

Extending tariff-free treatment, the industry argues, would reduce uncertainty for producers while supporting choice and affordability for American consumers. It could also offer relief to the US hospitality sector, which ultimately carries many of the additional costs and supply complications created by tariffs.

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