Reduced thirst for Scotch whisky and the uncertainty of Donald Trump’s trade war has led to an oversupply of the drink reminiscent of the “whisky loch” crisis of the 1980s, heightening the risk of job cuts and distillery closures across Scotland.

Global whisky sales fell 2.5 per cent in the first half of 2025, the third year of declines in a row after decades of consistent growth, leaving distilleries with a surplus that has forced some to pause or scale back production and others to expand warehouse capacity.

On a visit to the distilleries of Talisker and Dalwhinnie in recent weeks, Kate Forbes, Scotland’s deputy first minister, said production cuts there have had a “disproportionately large” impact on rural economies, and warned of the “catastrophic” impact of US tariffs on the industry, one of Scotland’s major employers.