Trump scraps Scotch whisky tariffs ‘in honor’ of King Charles

US President Donald Trump, King George III. Britain lifted tariffs on a key export on Thursday, following a state visit by Charles and Queen Camilla that appeared to help mend transatlantic relations soured by a series of political tensions.

“In honor of the King and Queen of the United Kingdom who have just left the White House and are soon returning to their great country, I will be removing the Whiskey Tariffs and Restrictions on Scotland being able to work with the Commonwealth of Kentucky on whiskey and Bourbon, two very important industries in Scotland and Kentucky,” the president said in a post on Truth Social on Thursday.

“People have wanted to do this for a long time, because Trade Between Countries was so great, especially regarding the Wooden Barrels used. The King and Queen made me do something no one else could do, without even asking!” he added.

Trump later told reporters he was “lifting all restrictions so Scotland and Kentucky can start trading again.”

“And I did it in honor of the newly departed King and Queen,” he said.

The UK government confirmed to CNBC on Friday that the changes announced the previous day will apply to all whiskey tariffs, including Irish whisky.

Last year, Britain became the first country in the world to sign a trade deal with the Trump administration following the announcement of the president’s so-called liberation day tariffs. The terms of Britain’s agreement included a 10 percent general duty on goods imported into the United States.

This meant nullifying the pre-existing zero-tariff trading environment for exporters on both sides of the Atlantic and imposing new duties on Scotch whiskey and other spirits shipped from Britain to America.

The Scotch whiskey industry employs around 40,000 people in Scotland, where whiskey will account for 23% of all goods exports in 2025. The industry is also a major buyer of used bourbon barrels from the United States.

Officials from the Scottish and UK governments had lobbied for a return to zero-tariff conditions on spirits exports; The Scotch Whiskey Association said in September this was costing its members £4 million ($5.44 million) a week in lost exports.

Scottish First Minister John Swinney, who leads the devolved government in Edinburgh, said in a statement following Trump’s announcement that he had made it his mission to “do everything possible to remove the US tariffs on our whisky”.

“People’s jobs were at risk,” he said. “Millions of pounds were being lost from the Scottish economy every month… I express my gratitude to the President for listening and taking action to remove tariffs. And Scotland is grateful to His Majesty the King for the key role he played in this tremendous success.”

The whiskey industry was also facing the prospect of tariffs on single malts returning to 25% in the coming months if a deal is not struck with the White House, as a five-year suspension on these tariffs is scheduled to expire.

The United States is the industry’s most valuable export market, Scotch Whiskey Association CEO Mark Kent said Thursday.

“Dtillers can breathe a little easier in this period when there is serious pressure on the industry,” he said. “Many people have worked tirelessly for months to restore zero-to-zero tariff trading for whiskey and bourbon. The special relationship shared by the Scotch Whiskey and American Whiskey industries will be revitalized with this announcement.”

The King and Queen wrapped up their four-day state visit to the United States on Thursday; that visit included a series of meetings in Washington, D.C., including the king’s speech to the Joint Session of Congress and a state dinner hosted by the president and first lady.

King Charles received a standing ovation in Congress after delivering a speech highlighting the value of the so-called transatlantic “special relationship” and urging the UK and US to unite in a “volatile and dangerous” time.

“The challenges we face are too great for any country to handle alone,” he said, before reminding us that NATO came to America’s aid in the immediate aftermath of the September 11 terrorist attacks on New York.

Prime Minister Keir Starmer’s relationship with Trump has soured in recent weeks after the president opposed the British government’s interest in Greenland and its pushback against requests for aid in Iran.

Early in his second term, Trump described Starmer as a friend despite their political differences and said the UK was protected from the brunt of his trade policies “because I love them”.

Many viewers said King Charles saved the “special relationship” from danger during his four-day trip this week.

After Tuesday’s state dinner, Trump called the king a “great friend,” telling reporters: “When you love the king of a country that much, it probably helps your relationship with the prime minister.”

In an emailed statement on Friday morning, Buckingham Palace said the king had been made aware of Trump’s “warm gesture” and “sends his sincere gratitude for a decision that will make a significant difference to the British whiskey industry and the livelihoods it supports.”

“His Majesty will be a huge blow to the President’s thoughtfulness and generous hospitality as he leaves the United States,” a palace spokesman said.

Matthew Barzun, who served as U.S. Ambassador to the United Kingdom under President Barack Obama, told CNBC’s Tania Bryer on Thursday that King Charles has so-called soft power. “It certainly increased the reservoir of trust, respect and understanding between Britain and the United States.

“The job of diplomacy, or a diplomat, is to leave this reservoir a little higher than you found it,” he said. “It decreases over time and sometimes there are big shocks to the system and you lose a lot of trust, respect and understanding. In that regard, I think this visit has very measurable benefits. I think the reservoir is increasing. It’s higher than it was that week ago and that’s important.”