spiritsEUROPE, which represents the spirits industry at a European level, has said that it is ‘extremely concerned’ about the EU’s plans to introduce ‘rebalancing tariffs’ on US whiskey and other spirits categories, in response to Trump administration tariffs on steel and aluminium.
Calling on the EU to ‘keep spirits out of unrelated disputes’, spiritsEUROPE said that the announcement comes at a ‘particularly difficult time’ for the spirits sector, given existing geopolitical tensions and a slowdown in many markets.
The tariffs are scheduled to come into effect on 1 April, and should they do so, they will have a ‘hugely damaging impact’ on both EU firms that produce spirits in the US, as well as US firms that are heavily invested in Europe.
‘Collateral damage’
“Yet again, spirit drinks have become collateral damage in an unrelated trade dispute,” commented Pauline Bastidon, trade and economic affairs director, 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.”
US whiskey
With the EU planning to allow its previously suspended countermeasures from 2018 and 2020 to take effect, US whiskey will now be facing a total tariff of 50%.
In addition, the European Commission is reportedly considering a second wave of countermeasures in response to new US tariffs affecting more than €18 billion of EU exports, which could come into effect in mid April.
“The clock is ticking. We urge the EU & the US to keep spirits out of unrelated disputes while they work on resolving their differences and protecting the vitally important transatlantic trade relationship,” Bastidon added. Read more here.
