Trump lifts tariffs on UK whisky to toast departing King Charles
Trump's Tariff Decision and Its Impact on UK-US Relations
By Daphne Psaledakis and Christian Martinez
WASHINGTON, May 1 (Reuters) - U.S. President Donald Trump said on Thursday that he was lifting tariffs on whisky from Britain, in a nod to King Charles on the final day of a royal visit celebrating a former colony's impending 250th anniversary of independence.
Background: Tariffs as a Foreign Policy Tool
The Republican president, who has wielded tariffs as a foreign policy tool, said in a post on Truth Social that he would soon be removing tariffs and restrictions related to Scotland's ability to work with Kentucky on whisky and bourbon.
Honoring the British Royals
Trump said the move was "In Honor of the King and Queen of the United Kingdom." He heavily praised Charles during his four-day state visit, saying he was the "greatest king".
Diplomatic Context of the Royal Visit
While the official reason for the trip was the anniversary, it was also designed to mend the bond between the two countries, which has lately been strained by Britain, alongside other European allies, declining to join the two-month-old U.S.-Israeli war against Iran.
Trade Relations and Symbolism
"People have wanted to do this for a long time, in that there had been great Inter-Country Trade, especially having to do with the Wooden Barrels used," Trump said in the post.
"The King and Queen got me to do something that nobody else was able to do, without hardly even asking! A wonderful Honor to have them both in the U.S.A."
Britain's Scotch Whisky Industry Reacts
BRITAIN'S SCOTCH WHISKY INDUSTRY RAISES A TOAST
Government and Industry Response
British trade minister Peter Kyle welcomed the move. "This is great news for our Scotch whisky industry, which is worth almost 1 billion pounds in exports and supports thousands of jobs across the UK," Kyle said.
Market Response and Industry Statements
The world's top spirits maker and owner of the Johnnie Walker brand, Diageo, said on Friday it "warmly" welcomed the news that the U.S. and Britain have agreed to restore tariff-free trade for Scotch whisky.
London-listed shares of Diageo, which has been struggling with U.S. tariffs and subdued sales, rose as much as 3% in early trade on Friday, in a boost for the British firm that counts North America as its largest market.
"We would like to thank all those who have worked so hard to secure this deal and support our industry," a Diageo spokesperson added.
Royal Response
A spokesperson for Buckingham Palace said Charles "sends his sincere gratitude" for the decision, adding that it would make an important difference to the British whisky industry.
"His Majesty will be raising a dram to the President's thoughtfulness and generous hospitality as he departs the U.S. after a most enjoyable state visit for both Their Majesties in this special anniversary year," the spokesperson said.
(Reporting by Ismail Shakil, Sam Tabahriti and Ryan Patrick Jones, additonal reporting by Yadarisa Shabong and Simone Lobo; Writing by Christian Martinez and Daphne Psaledakis; Editing by Michelle Nichols, Scott Malone and Alex Richardson)
