Spirits share prices have tumbled following reports that US President Donald Trump plans to implement a 15–20% baseline tariff on imports from the European Union (EU).
There are fears this would led to the EU imposing retaliatory tariffs on US spirits.
According to the Distilled Spirits Council of the United States (DISCUS), the US exported $2.4 billion in hard alcohol last year. The EU is its top market, importing approximately $1.2 billion in US spirits each year.
When the EU previously imposed a retaliatory tariff in 2018, American whiskey exports to the EU plunged 20%, from $552 million to $440 million (2018-2021).
During the last three years, American whiskey exports to the have EU surged nearly 60%, climbing from $439 million in 2021 to $699 million in 2024.
Earlier this year, the EUS threatened to impose a 50% retaliatory tariff on US spirits in response to tariff threats, which led shares in drinks companies such as Diageo and Brown-Forman to drop to multi-year lows.
Last month, analysts to predict that a 50% tariff on US whiskey sold in the EU would result in a 10% hit to Brown-Forman’s bottom-line.
DISCUS said: “The suspension of the EU’s 25% retaliatory tariff on American whiskey, rum, brandy and vodka over the last three years has allowed US distillers to begin rebuilding their presence in our largest export market.
“The EU’s decision to put American whiskey and other US spirits back on its retaliatory target list is a serious setback and deeply alarming. This decision threatens to undo the hard-won progress made by American distillers and will be a crushing blow to the recovery of US spirits exports to the EU.
“We need President Trump’s leadership to negotiate a deal with the EU to return to the zero-for-zero tariff framework that has proven beneficial for the U.S. spirits and hospitality sectors. Restoring this model is essential to ensuring the continued growth and vitality for spirits producers, farmers, restaurant owners and bartenders across the United States.”
In an earlier statement, DISCUS CEO Chris Swonger also expressed concerns about President Trump’s August 1 deadline for a 30% tariff on the EU and Mexico, and 35% tariff on Canada.
“We recognizs that President Trump is working to secure fair and reciprocal trade and remain hopeful that negotiations between the US, EU, Mexico and Canada will result in a permanent return to the long standing zero-for-zero tariffs for spirits trade between these major trading partners,” he said.
“Many spirits products are recognized as ‘distinctive products’ by the US, EU, Canada and Mexico and can only be made in their designated countries. As a result, the production of these spirits products, including bourbon, Tennessee whiskey, tequila, Canadian whisky, cognac and Irish whiskey, cannot simply be moved to another country or region.
“A permanent return to zero-for zero tariffs for distilled spirits products will greatly benefit American distilleries, farmers and restaurants at a time when the hospitality industry is facing a slowdown in the United States.”
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