UK whisky and craft beer makers fear US export collapse as Trump slaps new tariffs on booze

UK alcohol producers are bracing for a financial hangover after Donald Trump’s latest round of tariffs sent shockwaves through the industry, striking at the heart of whisky and craft beer exports to the United States.

Among the hardest hit is Penderyn Distillery, the pride of Welsh whisky-making. The firm had once celebrated the US’s independence by gifting Barack Obama a commemorative bottle in 2014. Now, a decade later, it finds itself shut out of the market it once toasted.

“Ultimately, it’s the consumer who loses out,” said Stephen Davies, Penderyn’s chief executive. With up to 10% of its £23 million turnover coming from US sales in good years, the newly imposed 10% tariff presents a daunting roadblock. “It’ll make the US market feel more like Canada — hard to enter and short on variety.”

Though Penderyn is a small player compared with Scotland’s whisky giants, it illustrates how widespread the pain could be. The Scotch industry alone makes up £913 million of the UK’s £1.6 billion annual alcohol exports to the US, accounting for about 2% of all UK exports and a quarter of the UK’s entire food and drink exports.

This isn’t the first time Scotch makers have tasted tariff pain. The 2019–2021 US-EU aerospace subsidy dispute saw a 25% tariff imposed on UK single malts, slashing exports by 25% in just three months and causing a total loss of over £600 million.

While Trump’s new tariff is lower at 10%, its duration remains unclear — creating prolonged uncertainty. The announcement, made during one of Trump’s fiery “Liberation Day” speeches, was part of a sweeping retaliatory measure aimed at allies and rivals alike.

A source in the spirits trade said many Scotch producers were keeping criticism muted, wary of provoking Trump. But the Scotch Whisky Association (SWA) voiced clear concern: “The industry is disappointed that scotch whisky could be impacted by these tariffs,” said a spokesperson. “We support UK government efforts to reach a pragmatic deal with the US.”

That sense of uncertainty is compounded by America’s fragmented liquor laws. Davies explained that even a small price rise — around $5 per bottle of Penderyn Legend — must pass through a three-tier chain of importers, distributors and retailers, each taking a cut. “We can’t absorb it all,” he said. “Some of that increase will end up in the retail price.”

In an already price-sensitive market dominated by bourbon, that added cost could erode Penderyn’s presence. While Davies doesn’t foresee a complete pullout, prioritisation is now on the table.

Whisky isn’t the only victim. UK craft brewers — already grappling with domestic challenges — fear being priced out of the US altogether. According to SIBA, the Society of Independent Brewers, only 17% of independent brewers export at all, and those who do may now face tough choices.

“This is not good for independent British brewers,” warned SIBA chief Andy Slee.

Though small in volume, UK exports of beer, gin, and wine to the US remain significant: 21% of malt beer, 18.6% of spirits, and nearly 15% of wine exports head across the Atlantic. Established names like Samuel Smith’s and newer indie breweries have built loyal US followings — ones now at risk.

For the UK’s alcohol sector, Trump’s tariffs aren’t just economic—they’re deeply personal. With centuries of trading tradition, historical ties, and shared heritage on the line, the impact resonates far beyond profit margins.