US alcohol industry groups have expressed concern over the impact of tariffs on EU-made products, warning of a potential $2bn loss in sales.
In a letter yesterday (6 August), the Toasts not Tariffs Coalition, comprising 57 US drinks associations and guilds, highlighted the issue to US President Donald Trump.
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“We estimate that a 15% tariff on EU wine and spirits could result in
more than 25,000 American job losses and nearly $2 billion in lost sales,” the letter said.
The EU and US secured a trade deal at the end of July, however neither side was able to agree on an exemption for wine at spirits.
According to the EU wine trade association Comité Européen des Entreprises Vins, as of 1 August, a 10% tariff applied to goods being shipped to the US up until tomorrow, when a 15% tariff then comes into effect for EU wine and spirits.
President Trump however also told CNBC earlier this week that the EU would face 35% tariffs if it failed to invest $600bn into the US as part of the EU-US trade deal.
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By GlobalDataIn its letter, the coalition pressed the President to secure a deal as the industry reaches “the critical holiday season”.
“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 US as soon as possible,” it said.
The coalition emphasised the unique nature of wine and spirits, often tied to specific regions, making relocation to avoid tariffs impractical.
It also stressed the importance of international trade for the industry, noting that most US wine exports go to countries with low or zero import duties.
“Our sectors stand as a model of mutually beneficial trade, and the livelihoods of those working within it depend heavily on international trade,” the letter read.
It added that nearly 86% of US spirits exports are to countries that have eliminated tariffs on US spirits, with 98% of imports originating from such countries.
The potential damage to the US hospitality sector from these tariffs could have “lasting, negative impacts”, the coalition warned.
In a separate statement from the letter, Chris Swonger, the president and CEO of the Distilled Spirits Council of the US, added: “We need President Trump’s leadership to safeguard the US distilled spirits sector by returning to permanent, tariff-free trade on distilled spirits between the US and EU.
“Doing so will help secure economic vitality during one of the most challenging times for the hospitality industry and set a benchmark for all other countries as trade negotiations with the US continue.”
