Alcohol producers urge Trump to drop tariffs

A coalition of alcohol producers, hospitality groups and suppliers has warned President Donald Trump that his 15% tariff on EU goods could devastate US alcohol sales and trigger widespread job losses. The group says the move threatens nearly US$2 billion in revenue and the livelihoods of 25,000 Americans across bars, restaurants and nightclubs.

A powerful coalition of 57 alcohol producers, dry goods suppliers, restaurateurs and other hospitality groups has written to President Donald Trump, warning him that his 15% tariff on EU goods could slash US alcohol sales by nearly $2 billion and jeopardise 25,000 American jobs.

The letter was supported by beverage giants such as Diageo and Pernod Ricard, according to a Reuters report. It also received support from US whiskey and wine producers.

Tariffs at highest level in a century

The extent of Trump’s tariffs has come to light with experts estimating that US customs duties on all goods (not just alcohol) this month will be between 17% and 20%, compared with 2.5% on 1 January, their highest level in a century.

Brussels bows to avoid higher penalties

In an eleventh-hour deal before Trump’s August 1 deadline, Brussels acceded to a 15% import tariff on most EU goods shipped to America, halving Trump’s threat of a 30% rate. Until August 1, EU exports of wines and spirits had not been taxed at the US border.

Lobbying fails to win exemption

Despite heavy lobbying on both sides of the Atlantic for exemption, the wine and spirits industries’ hopes were thwarted. There are hopes that continuing talks could lead to an easement in the autumn.

Meanwhile, US producers, especially of bourbon, worry that the US could retaliate with tariffs on US spirits.

The Toasts Not Tariffs Coalition, comprising trade associations mainly from the wine and spirits sectors, wrote to Trump pleading for a better agreement that would ensure “fair and reciprocal trade” for their industries.

Jobs, sales and prices at risk

According to the letter, the 15% tariff poses a significant threat to the US restaurant and nightclub industry, jeopardising 25,000 jobs and nearly $2 billion in sales. Reuters says the letter did not detail how that total was calculated.

It read: “As we approach the critical holiday season, a period that is essential to the success of our industries, we implore you to secure this important deal for the U.S. as soon as possible. It would also represent a win for American workers, businesses, and consumers. “

It said the tariffs would increase menu prices, harm American businesses, and worsen existing issues and challenges.

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