Trump tariff cut gives advantage to NI whiskey distillers

Whiskey being exported from Northern Ireland to the US will no longer face tariffs after President Trump said he was dropping the charges on all UK-distilled whiskey.

By contrast whiskey distilled in the Republic of Ireland will continue to face the standard 15% tariff which applies to EU goods entering the US.

Trump said he had taken the decision after King Charles and Queen Camilla's state visit to the US.

Tariffs are effectively a tax on trade, applied to goods as they enter a country. The charge is paid by the domestic company that imports the goods, not the foreign company that exports them.

However, the burden can ultimately fall on the exporting firm if it has to cut its prices or finds that it is less competitive in that market.

In a post on his Truth Social account, Trump said the move was "in honour of the King and Queen of the United Kingdom, who have just left the White House, soon headed back to their wonderful country".

His post focused on Scotch whisky though the US Trade Representative (USTR) later confirmed it would apply to all whiskey produced in the UK.

The move puts Northern Ireland producers at a potential advantage to rivals in the Republic of Ireland when selling to the US.

It could mean NI distilleries can keep their shelf prices lower or reinvest larger profit margins into marketing or other activities.

The major potential beneficiary is Bushmills, the largest distillery in Northern Ireland.

Industry estimates suggest it accounts for between 5% and 10% of Irish whiskey sales in the US.

The US market is dominated by Jameson which has a market share estimated at around 70%.

Bushmills has been increasing its marketing efforts in the US, for example launching a 12 year old single malt there before making it more widely available.

They have also sponsored PGA golf tour.