China to Cut Whisky Import Tariff From 10% to 5%

After a year of higher tariffs, China is set to reopen a window for lower duties on whisky imports. China and the United Kingdom reached a series of trade understandings during British Prime Minister Keir Starmer’s visit to China, including a plan for China to cut its whisky import tariff from 10% to 5%.

The adjustment would return whisky to the lower tariff level that had been in place for several years and sends a fresh policy signal to a Chinese spirits import market that is undergoing structural change.

The agreement was signed during Starmer’s visit to Beijing and is expected to generate £250 million in economic benefits for the UK over the next five years. By value, China is currently the 10th-largest export market for Scotch whisky. The tariff cut is expected to help Scottish distillers compete more effectively in one of the world’s fastest-growing spirits consumption markets.

According to Chinese customs data, the UK is China’s largest source of imported whisky. In 2025, China imported 27.68 million litres of UK whisky, with an import value of US$375.77 million.

Starmer said whisky distilleries are “the jewel in Scotland’s crown,” adding that the tariff cut in China follows a similar breakthrough achieved in India.

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

Mark Kent, chief executive of the Scotch Whisky Association, said China has become a priority growth market for many Scotch whisky producers. Over recent decades, he noted, China has developed into a sophisticated market with a strong focus on premium quality and a deep understanding and appreciation of Scotch whisky.

Cutting the tariff from 10% to 5% could help reinvigorate Scotch whisky exports to the market, Kent said. “This is another tremendous result delivered by the UK government for Scotland’s world-renowned whisky industry. From Delhi to Beijing, this government is opening doors for Scottish exporters and putting money in the pockets of working people across Scotland.”

The move follows a free trade agreement reached earlier this year between the UK and India, which reduced tariffs on British whisky entering India from as high as 150% to 75%, dramatically reshaping Scotch whisky’s prospects in the Indian market. With China now following suit, the UK has secured two major tariff reductions in key growth markets within a short period.

China’s tariff cut on whisky, however, will not apply exclusively to the UK. According to a statement from China’s Ministry of Finance, the reduction will apply to the entire whisky category. As a result, producers from other whisky-exporting countries, including Japan, Ireland and the United States, will also benefit.

Before 2025, both whisky and brandy had been subject to a provisional import tariff rate of 5% in China, a policy that had been in place since 2017. From Jan. 1, 2025, import tariffs on both categories reverted to the most-favoured-nation rate of 10%. The latest adjustment means whisky tariffs will return to 5% after one year at the higher rate.

The Ministry of Finance also said the new tariff cut for whisky will continue to be implemented as a provisional rate, rather than as a permanent reduction.

Despite operating under a higher tariff regime in 2025, whisky imports showed resilience. Unlike brandy and wine, which both saw sharp declines in import volume and value that year, China’s whisky import volume rose 22.79% year on year. Import value slipped only slightly, down 1.31%, indicating that lower-priced whisky products accounted for a larger share of imports.

Historically, whisky has occupied a relatively steady position in China, with consumption driven mainly by enthusiasts and a segment of buyers who once viewed whisky as a financial asset. As whisky’s investment appeal has faded, consumption has increasingly returned to drinking occasions and broadened among a wider consumer base.

In 2025, whisky expanded in some regional markets and began appearing in certain business entertainment settings, supported by its price competitiveness compared with well-known cognac brands.

With whisky tariffs now set below those applied to brandy, the latest cut is expected to further improve the import environment. Pan Liu, marketing director at Wintek (Shenzhen) Import & Export Ltd., said whisky prices had already undergone a noticeable correction in recent years, with import volumes rebounding in 2024, largely driven by mid- to lower-priced products.

“The renewed tariff cut will further reduce import costs and could support continued growth in import volumes,” Pan said.

A China-based sales representative for a Scotch whisky brand, who declined to be named, said that amid a slowing economy and more rational consumer behaviour, lower tariffs would help ease cost pressures on imported brands and create more favourable conditions for their long-term development in the Chinese market.