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Donald Trump‘s far-right political mandate has everyone on constant alert. As far as the spirits industry is concerned, he has just implemented a new tariff on wine, beer, spirits and other alcoholic products for Europe. This could soon see drinks triple in price.
The trade war between the two powers began when the EU announced its intention to impose a 50% tariff on US whisky in response to Trump’s policies. Predictably, the president reacted immediately via his social network, Truth Social, expressing his displeasure: ‘The European Union, one of the most hostile and abusive tax and tariff authorities in the world, just imposed a 50% tariff on whiskey’.
Trump was quick to announce his retaliation, stating that if the EU did not remove its tariff, the US would slap a 200% tariff on all wines, champagnes and spirits from France and other EU countries. ‘This will be great for the wine and champagne business in the US,’ he added in his message.
The US president’s plans to impose such a high tariff on imported drinks would have a devastating impact on consumers and producers alike. Prices of Irish whiskey brands such as Jameson and Tullamore Dew could triple, and vodka aficionados would have to spend a considerable part of their budget to buy Polish brands such as Belvedere.
As for wine, local producers will not have the capacity to meet demand, as the country is the world’s largest importer of wine, worth more than $4.9 billion a year. Meanwhile, popular European beers such as Heineken (Netherlands) and Germany’s Bitburger and Weihenstephaner will also be subject to the new tariffs.
In response, the Distilled Spirits Council of the United States, the organisation representing the spirits industry, issued a statement urging President Trump to halt the imposition of these tariffs and to seek a diplomatic solution with the European Union. For years, the two blocs have maintained a zero-tariff policy on alcoholic products, which has favoured smooth trade.
