Trump announces big change in tariffs to "honor" King Charles

Washington DC - President Donald Trump said Thursday he was removing tariffs on Scottish whiskey in honor of Britain's King Charles III and Queen Camilla as they wrapped up their state visit.

In a social media post on Thursday, President Donald Trump (r.) announced he was lifting tariffs on Scottish whiskey in "honor" of King Charles III.   © Andrew Harnik / GETTY IMAGES NORTH AMERICA / Getty Images via AFP

Trump's announcement as the royal couple ended their four-day trip to the US represents a major trade concession to key ally Britain, even as the Iran war strains transatlantic relations.

Shortly after bidding the British royals goodbye at the White House, Trump posted on Truth Social that he was making the gesture "in Honor of the King and Queen of the United Kingdom."

"The King and Queen got me to do something that nobody else was able to do, without hardly even asking!" Trump wrote.

China urges US to preserve "hard-won stability" of diplomatic ties amid rising tensions over Taiwan and Iran
China China urges US to preserve "hard-won stability" of diplomatic ties amid rising tensions over Taiwan and Iran

Scotch whiskey from the UK has faced a 10% tariff during Trump's second presidency. But the rate was on course to jump later this year when the suspension of an earlier 25% tariff – part of a previous trade truce – was set to expire.

The US remains the primary export market for Scotch whiskey, accounting for $1.2 billion per year.

In his post, Trump said he was "removing the tariffs and restrictions" on whiskey, but added that it related to Scotland's trade with the bourbon-making state of Kentucky, particularly on wooden barrels.

But Trade Representative Jamieson Greer later appeared to confirm the announcement applied to the alcoholic drink itself.

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"The United States will allow preferential duty access for whiskey produced in the United Kingdom," Greer said in a statement.