The wine, distilled spirits, and general alcohol sector is bracing for a bitter tariff dispute between the US and European Union (EU).
The EU recently announced new 50% tariffs on whiskey exports from the US in response to President Donald Trump’s recent tariffs on EU aluminum and steel exports.
President Trump imposed 25% tariffs on EU steel and aluminum after claiming the EU treats American steel manufacturers unfairly.
The EU swiftly responded by imposing 50% tariffs on US whiskey.
Trump subsequently threatened to foist prohibitive tariffs on the EU’s entire alcohol sector if the 50% whiskey tariffs are not rescinded.
“If this Tariff is not removed immediately, the U.S. will shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES,” said Trump via Truth Social.
“This will be great for the Wine and Champagne businesses in the U.S.,” concluded Trump.
American Whiskey producers lamented the EU’s tariffs, emphasizing the decades of uninterrupted free trade between the EU and US spirits markets.
“Tariffs on American Whiskey at 50% on April 1 is deeply disappointing and will severely undercut the successful efforts to rebuild U.S. spirits exports in EU countries,” said Distilled Spirits Council (DSC) President and CEO Chris Swonger.
According to DSC, global U.S. spirits exports grew nearly 280% in the past two decades –from $587 million to more than $2.2 billion.
Trump claimed tariffs on EU spirits imports would be “great for the Wine and Champagne businesses in the U.S.”
Conversely, President Swonger argued that, given the spirits industry “continues to face a slowdown in U.S. marketplace,” the reciprocal EU-US alcohol tariff trade war will “negatively impact distillers and farmers in states across the country.”
The EU’s whiskey tariffs are scheduled to take effect on April 1st and, pending their rescission, could trigger Trump’s retaliatory tariffs.
