Tariffs could cost alcohol industry US$2bn in sales, Trump warned
A 15% US tariff on EU goods could slash alcohol sales by nearly US$2 billion and threaten 25,000 American jobs, industry leaders have warned in a letter to President Donald Trump. With the festive season looming, the pressure is mounting for a deal.
A coalition of 57 alcohol industry organisations has warned that a 15% US tariff on European Union goods could put nearly $2 billion in sales and 25,000 American jobs at risk, Reuters reported yesterday, 6 August.
The group, which includes major producers such as Diageo and Pernod Ricard, as well as US whiskey and wine makers, glass suppliers, restaurants and retailers, issued the warning in a letter sent to US President Donald Trump on Tuesday.
No exemption for wine and spirits
The letter comes after Washington and Brussels agreed last month to impose a 15% tariff on most EU goods. The decision, made after negotiations halved the previously threatened rate, avoided a wider trade war – but did not grant the wine and spirits sector the exemption it had been seeking.
The appeal, made through the Toasts Not Tariffs Coalition, calls on the US government to secure a better deal that ensures “fair and reciprocal trade” for the drinks industry.
The coalition said that, with the crucial October–December period approaching, the tariffs could hurt businesses just as they enter their busiest season. The letter did not explain how the projected sales and job losses were calculated.
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“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,” the letter read.
Impact on consumers and businesses
Industry representatives warned that the tariffs would drive up menu prices, damage American businesses, and compound existing market pressures.
Sales of both wine and spirits are already facing challenges. Wine has been losing ground to other drinks categories, while even spirits, which recently overtook beer in popularity, are being affected by rising living costs and a consumer shift towards healthier choices.
The US remains the most important export market for many European wine and spirit producers, while Europe is a key destination for American spirits such as bourbon.
Although the EU has included some US alcohol on a list of potential targets for retaliation, it has suspended any response for six months.
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