EU Responds to Trump With 50% Tariff on Already Reeling American Whiskey Sector

On March 12, The European Union (EU) announced that it plans to implement a 50 percent tariff on American whiskey in response to the Trump administration’s global levy on all steel and aluminum imports. The retaliatory measure is set to go into effect on April 1, and will target multiple American products including whiskey, motorcycles, and motorboats.

This back-and-forth is the continuation of a similar tariff saga that took place during Trump’s first term in 2018, when he imposed 25 percent and 10 percent tariffs on European steel and aluminium, respectively. The tariffs were suspended under the Biden administration, but Trump recently reignited the controversy, bumping up the tariffs to 25 percent on all imported aluminium and steel.

The EU’s current countermeasure is expected to affect U.S. exports to the tune of $24.5 billion, and could further increase to $28 billion if the EU decides to add more products to the list of taxed U.S. goods. Given that Europe is the biggest export market for American whiskey, the 50 percent tariff is sure to be a major blow to the already-struggling domestic whiskey sector.

According to the Distilled Spirits Council of the United States (DISCUS), American whiskey exports to the EU plummeted 20 percent, from $552 million to $440 million, during the EU’s retaliatory tariff between 2018 and 2021. However, over the last three years, American Whiskey exports to the EU have more than recuperated, increasing from $439 million to $699 million.

While the European market has become a bright spot for American whiskey in recent years, the category has seen a significant slowdown since its peak popularity. In 2024, American whiskey’s overall sales declined for the second year in a row.

“The EU’s announcement to reimpose these tariffs on American Whiskey at 50 percent on April 1 is deeply disappointing and will severely undercut the successful efforts to rebuild U.S. spirits exports in EU countries,” DISCUS president and CEO Chris Swonger said in a statement. “Reimposing these debilitating tariffs at a time when the spirits industry continues to face a slowdown in U.S. marketplace will further curtail growth and negatively impact distillers and farmers in states across the country.”

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