Threat of EU Tariffs Worries U.S. Distillers

At a time when the U.S. spirits industry already faces economic slowdown at home, the threat of renewed European Union tariffs has further rattled the industry.

American distillers suffered through damaging tariffs during the first Trump presidency. Now with Trump back in the White House and threatening an escalating trade war, the Distilled Spirits Council of the United States is urging that cooler heads prevail.

“The EU’s announcement to reimpose these 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,” says DISCUS President and CEO Chris Swonger, in a statement. “The U.S. and EU spirits sectors enjoyed fair and reciprocal zero-for-zero tariffs between 1997 and 2018. Transatlantic trade in spirits increased by nearly 450% during this time.”

Swonger is already a regular guest on news TV in the second Trump presidency, urging the White House to reconsider tariffs against Canada and Mexico. Now it appears that Europe is the next front in the U.S. trade war.

“Many spirits products are recognized as ‘distinctive products’ by the U.S. and EU and can only be made in their designated countries,” Swonger argues. “As a result, the production of these spirits products, including bourbon, Tennessee whiskey, Cognac and Irish whiskey, cannot simply be moved to another country or region.”

“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,” Swonger adds. “We urge the U.S. and EU governments to come to a resolution that gets our spirits industry back to zero-for-zero tariffs. This is a model that has allowed spirits exports between the U.S. and EU to flourish and is in line with President Trump’s vision for fair and reciprocal trade.”

According to DISCUS data, due to the imposition of the EU’s retaliatory tariff in 2018, American whiskey exports to the EU, the largest American Whiskey export market, plunged 20%, from $552 million to $440 million (2018-2021). But during the last three years, with those original tariffs now lifted, American whiskey exports to the EU surged nearly 60%, climbing from $439 million in 2021 to $699 million in 2024.

Trump, in response to Europe’s proposed tariffs on U.S. alcohol (which come in response to Trump’s tariffs on foreign steel and aluminum), has threatened a 200% tariff on EU alcohol imports.

Feature photo by Ana Lanza on Unsplash.

The post Threat of EU Tariffs Worries U.S. Distillers appeared first on Cheers.