The Scottish whisky market has slipped into over-supply, because of U.S. tariffs and shrinking demand, reports the Guardian.

Global sales of scotch whisky declined 3% in the first half of 2025, marking the third consecutive year of decline after decades of growth, according to the alcohol data provider IWSR.

While Keir Starmer secured a trade deal with U.S. President Donald Trump in May, whisky imports from the U.K. into the U.S. are still subject to a 10% tariff. The Scotch Whisky Association (SWA) has estimated that currently amounts to £4 million ($5.41 million) per week. The SWA also warned that U.S. tariffs are costing the sector almost £20 million a month in lost sales, and more than 1,000 jobs.

Several large scotch producers have chosen to freeze or scale back production. Diageo, the FTSE 100 drinks group behind a number of whiskies such as Johnnie Walker, Talisker and Lagavulin, has reduced production at some of its malt distilleries to “balance capacity against current demand.”

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Overall scotch sales in the U.S., the biggest market for the drink, fell 6% in the first nine months of 2025, according to IWSR. That was an improvement on a 9% fall in 2024, but well below growth rates in 2020, when sales rose by 4%.

A poll by Gallup in August found the share of Americans who say they consume alcohol was at its lowest in nearly 90 years, at 54%.