US president Donald Trump’s threat to impose a 200% tariff on ‘wines, champagnes, and alcoholic products’ from European Union countries has set alarm bells ringing in the boardrooms of the drinks’ industry’s big players.
Brussels-based trade group spiritsEUROPE – which represents the interests of 31 national associations and eight multinational companies, including Bacardi-Martini, Moët Hennessy, Diageo, Suntory Global Spirits, Campari Group, Pernod Ricard, Rémy Cointreau, and Brown-Forman – issued a statement expressing ‘deep alarm’ at the escalating transatlantic trade war.
Trump issued the alcohol tariff threat in response to the EU decision to place a 50% tariff on American bourbon whiskey, which in turn was the European response to Trump’s initial move of placing 25% tariffs on EU steel and aluminium exports.
The spiritsEUROPE trade body said that ‘once again, as part of an entirely unrelated dispute’, its industry was being dragged into the firing line.
“This cycle of tit-for-tat retaliation must end now, said the body.
“We urge both sides to stop using our sector as a bargaining chip in conflicts that have nothing to do with us.
“Spirits trade exemplifies how open markets create mutual benefits. Reimposing tariffs would be a step backward—hurting businesses, workers, and consumers on both sides,” said sE.
“Transatlantic spirits trade has thrived tariff-free since 1997, with brief but damaging disruptions due to past unrelated disputes. Our sector is fully united in its commitment to keeping it that way.
“EU spirits companies have invested heavily in US production, including American Whiskey, just as US spirits companies own distilleries across the EU, producing regionally distinctive products tied to local heritage.
“We are each other’s top markets—interwoven by investment, tradition, and shared success. The EU and US must de-escalate this dispute now and ensure spirits are never again caught in the crossfire.”
According to sE’s figures, the EU spirits industry represents over €26 billion in EU sales; 1 million jobs in production and sales; €21.4 billion of tax contribution and is the EU’s largest agri-food exporter with €9.6 billion of exports.
The Irish Whiskey Association also commented: “There is no winner in a trade war. The imposition of tariffs will impact on our businesses and our consumers.
“Having our sector implicated in this dispute puts jobs, investments and businesses at risk and has the potential to be devastating for Irish Whiskey.”
As yet, there has been no specific comment from the Scotch whisky sector – but latest figures confirm that the United States currently retains its position as the largest export market by value, worth £971m in 2024.
