This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
News
EU to slap 50% tariff on American whiskey
The European Commission is planning to move forward with its 50% tariff on American whiskey from 1 April, and is considering targeting other US spirits such as gin.
The European Union (EU) announcement is in retaliation to US president Donald Trump’s move to bring back tariffs on steel and aluminium imports.
Trump had previously imposed tariffs of 25% and 10% on European steel and aluminium, respectively, during his first term as president in 2018. His latest move has increased the aluminium tariff to 25%.
It sparked an immediate response from the EU, which announced its intention to impose counter tariffs on billions of euros-worth of US goods, such as Bourbon, boats and motorbikes.
The European Commission said the US tariffs would affect a total of €26 billion (US$28.3bn) of EU exports, which represents approximately 5% of total EU exports to the States.
A retaliatory 25% tariff on imports of American spirits into the EU was originally enacted by Trump in 2018, as part of the disagreement between his administration and the EU over steel and aluminium.
In June 2021, the hike was set to double to 50%, before it was suspended until 1 December 2021 to give the two sides time to come to an agreement.
In January 2022, then US president Joe Biden placed a two-year suspension on the tariffs, which was further extended in December 2023 until 31 March 2025.
The European Commission will allow the suspension of the existing 2018 and 2020 countermeasures against the US to lapse on 1 April, but it now means that American whiskey will be hit with a 50% tariff from this date.
Furthermore, in response to these US tariffs, the Commission is now planning to target additional US products from mid-April.
The EU is considering tariffs as part of a ‘second wave’ on a number of products including wine, gin, liqueurs, spirits distilled from fruit, and cordials.
The Commission has opened a consultation on this new list until 26 March and is inviting input from anyone who could be affected by the measures.
‘Hugely damaging impact’
In a statement, trade body SpiritsEurope said it was “extremely concerned” by the EU’s move to rebalance tariffs on American spirits.
SpiritsEurope warned the tariffs could have a “hugely damaging impact on the EU companies that produce US spirits, US companies that are heavily invested in Europe and all actors in the value chain, putting at risk the many jobs they support, including in rural areas”.
The move also comes at a difficult time for the industry amid a slowdown in sales and geopolitical uncertainly, the trade body highlighted.
“Yet again, spirit drinks have become collateral damage in an unrelated trade dispute,” said Pauline Bastidon, trade and economic affairs director at SpiritsEurope.
“As highlighted in our numerous engagements with the European Commission over the last seven years, we fail to understand how this will help with the broader, unrelated dispute on steel and aluminium.
“The EU and US spirits sectors stand united in their steadfast commitment to maintaining transatlantic spirits trade tariff-free.”
SpiritsEurope said the EU and US have held a reciprocal zero-for-zero agreement since 1997, which removed tariffs on spirits. As such, there was 450% growth in transatlantic trade from 1997 to 2018, when tariffs were introduced.
SpiritsEurope believes the return of tariffs would result in “devastating consequences for the sector”.
Bastidon urged the EU and US governments to “keep spirits out of unrelated disputes while they work on resolving their differences and protecting the vitally important transatlantic trade relationship”.
‘Curtail growth’
The Distilled Spirits Council of the US (Discus) also expressed its “deep disappointment” over the EU’s tariff announcement.
Discus president and CEO Chris Swonger said: “For the past three years that the EU’s 25% tariff on American whiskey has been suspended in the steel and aluminium dispute, US distillers have worked hard to regain solid footing in our largest export market.”
He warned the latest move would “severely undercut the successful efforts to rebuild US spirits exports in EU countries”.
Swonger continued: “Reimposing these debilitating tariffs at a time when the spirits industry continues to face a slowdown in US marketplace will further curtail growth and negatively impact distillers and farmers in states across the country.”
He joined SpiritsEurope’s call for a return to tariff-free trade.
“This is a model that has allowed spirits exports between the US and EU to flourish and is in line with president Trump’s vision for fair and reciprocal trade,” Swonger concluded.
According to data from Discus, American whiskey exports to the EU (the category’s largest export market) plunged by 20% to US$440 million between 2018 and 2021, following the EU’s retaliatory tariff in 2018.
Last week, Trump announced his proposed 25% tariffs on Mexico and Canada would be pushed back to 2 April. The move will impact spirits such as Tequila and Canadian whisky.
In the March 2025 issue of The Spirits Business, we examined how brands have been preparing for potential tariffs, and what moves are likely to come next.
Producers such as Luxco have fast-tracked shipping their Bourbon to Europe ahead of the American whiskey tariff suspension’s expiry date in March.
Related news
Tariffs up for discussion on day three at The SB Hub