US tariffs and slowing demand hit Scottish whisky distilleries

The Scottish whisky industry has slipped into a supply glut as US tariffs and falling demand weigh on the country’s distilleries.

- Lauren Almeida

Global sales of scotch fell by 3% in the first half of 2025, marking the third consecutive year of decline after decades of growth, according to the alcohol data provider IWSR.

The slowdown in sales comes as distilleries grapple with uncertainty around Donald Trump’s trade tariffs as well as declining rates of alcohol consumption.

While Keir Starmer secured a trade deal with Trump in May, whisky imports from the UK are still subject to a 10% tariff. The Scotch Whisky Association (SWA) has estimated that it costs the sector £4m a week.

The glut has forced some of the biggest brands to freeze or scale back production. Diageo, the FTSE 100 drinks group behind whiskies including Johnnie Walker, Talisker and Lagavulin has cut production at some malt distilleries to “balance capacity against current demand”.