One in five Scottish distilleries are experiencing “financial distress” amid rising pressure from global whisky tariffs.
New data from advisory group BTG has found that 19% of the nation’s distilleries have been affected by “significant or critical financial issues” in recent months.
The firm says that 69 Scottish distillers are facing distress, an increase of 41% over the last three months of 2025.
“Distilleries in Scotland, where the majority of the UK’s whisky production is based, are facing a perfect storm of lowering demand, rising production costs and increased tariffs in key markets, factors that have already cost numerous brands their businesses over recent months,” Thomas McKay, managing partner of BTG in Scotland, said.
Over the last year, Scottish distilleries have seen a rise of 17% in signs of financial distress, 2.5 times more than the UK average rise (6.7%).
“Previously thriving businesses that have existed for generations are facing distress, often through no fault of their own, and there is a case for additional support to the sector to preserve the heritage of the Scottish whisky industry in unprecedented times.
“This is especially clear when you consider that Scottish distilleries directly employ more than 10,000 people, well over half of the industry’s workforce in the UK,” McKay added.
Worldwide whisky sales have declined for the third consecutive year, a troubling sign after decades of growth.
Alcohol data provider IWSR says that the downturn can be attributed to a range of factors, including reduced demand for alcohol, rising operating costs, and falling export sales.
A 10% tariff on whisky exports to the United States began in May 2025, while tariffs on single malts are expected to return in 2026 with a further 25% charge.
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Lobbying efforts by the UK and Scottish Governments have proven unsuccessful in swaying the Trump administration.
McKay said: “Swift action is needed to help the industry in these very challenging times, especially if the threatened higher tariffs come into effect in the summer. Exports to China fell by over 30% last year, and it is still not clear whether US orders in 2025 were artificially high in order to build up stocks there before the new tariffs impact prices.
“If so, that could see exports of scotch to the US fall away precipitously, and it’s important for businesses to have a plan if that does happen,” he added.
