Scotch on the rocks?

For in Scotland, whisky is more than a national drink. It is by far one of our greatest economic success stories, with a sector that supports thousands of livelihoods across the country.

However as legal advisers to drinks businesses in Scotland, we have seen first-hand the uncertainty tariffs can create for producers and exporters.

And while the political headlines often focus on international diplomacy, the commercial reality is felt much closer to home - delayed investment decisions, pricing pressures, disrupted supply chains and uncertainty for long-term contracts.

The numbers themselves show just how important Scotch whisky is to Scotland and the wider UK economy. According to the Scotch Whisky Association, it currently remains the world’s number one internationally traded spirit, with exports worth £5.36 billion in 2025 alone.

The sector also represents 72 per cent of all Scottish food and drink exports, while around 43 bottles of Scotch whisky are shipped around the world every second.

Meanwhile, the US remains the industry’s single largest export market, worth £933 million in 2025 despite the challenges caused by tariffs. However, exports to the US fell by 4 per cent in value last year, while export volumes dropped by more than 9 per cent.

These figures demonstrate both the resilience of the sector and its vulnerability to political decision-making overseas. The reality is that Scotch whisky and Kentucky bourbon are more economically intertwined than many consumers realise. While Scotch producers export vast quantities of whisky to the US, Scotland also relies heavily on America’s bourbon industry for the oak casks essential to Scotch maturation.

Under Scotch whisky regulations, Scotch must be matured in oak casks in Scotland for a minimum of three years. Most of those casks originate from the US, where bourbon producers are legally required to use new charred oak barrels only once.

This, in turn, means the industries are not simply competitors - they are commercially connected. Tariffs and wider trade tensions risk affecting not only whisky exports, but also supply chains, production costs and commercial relationships.

This is why stability in international trade matters so much to the Scotch whisky sector. That said, while the latest developments will undoubtedly be viewed positively by the industry, businesses should remain realistic and commercially cautious.

President Trump has shown repeatedly that trade policy can shift quickly and unpredictably, particularly in relation to international tariffs and protectionist measures.

For exporters, this highlights the importance of building resilience into commercial arrangements. Businesses operating internationally should ensure distribution agreements, pricing mechanisms and supply contracts are sufficiently robust to deal with sudden policy changes or market disruption.

Nonetheless, we have every reason to be optimistic about the future of Scotch whisky and its enduring global appeal. Many of our clients regularly seek advice from us on helping to navigate tariff fluctuations and maintain a realistic view of the ever-changing market.

Scotch whisky is not only a cultural icon, but also a cornerstone of Scotland’s economy and a globally traded product operating within an increasingly unpredictable international landscape. For businesses in the sector, navigating that landscape successfully will require not only craftsmanship and heritage, but also careful legal and commercial planning.

Angus MacLeod is a Partner, Wright, Johnston & Mackenzie LLP (WJM)