Dismay across Atlantic as EU tariffs on US whiskey introduced

By Hamish Graham

Published: 13 March, 2025

The EU’s announcement of a slate of retaliatory tariffs from 1 April on certain US imports has included a 50% tariff on American whiskey and other US spirits. The decision was part of the institution’s response to the Trump government’s recent tariffs on European steel and aluminium.

The tariffs are more severe than the EU’s last round of retaliatory tariffs imposed in 2018, which saw a 25% tariff imposed on American whiskey. This previous dispute led to a fall in American whiskey exports to the EU from $522mn in 2018 to $440mn in 2021.

For the past three years this 25% tariff had been suspended in softening relations between the trading blocs, with exports of American whiskey subsequently rising nearly 60% from $440mn in 2021 to $669mn in 2024.

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The imposition of more severe tariffs than those seen the 2018 tariffs will be of significant concern to the US spirit trade as the EU remains the largest export market for US whiskey. Chris Swonger, president and CEO of the US-based Distilled Spirits Council, believes the new tariffs will cause a major headache for his industry.

He said: “Many spirits products are recognized as 'distinctive products' by the US and EU and can only be made in their designated countries. As a result, the production of these spirits products, including Bourbon, Tennessee Whiskey, Cognac and Irish Whiskey, cannot simply be moved to another country or region.”

The concern regarding these latest tariffs is felt both sides of the Atlantic. Pauline Bastidon, trade & economic affairs director at spiritsEUROPE is frustrated the spirits trade has once more been impacted by a wider trade dispute.

“Yet again, spirit drinks have become collateral damage in an unrelated trade dispute. 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”, she commented.

Prior to 2018 the EU and the US had enjoyed reciprocal tariff free trading on spirits since 1997. In that period, 1997 to 2018, transatlantic trade in spirits had grown 450%.

In response to the EU's announcement, President Trump has threatened the bloc with a 200% tariff on EU alcohol exports to the US. Reacting to Trump's fresh threat Chris Swonger, president and CEO of the Distilled Spirits Council, is urging a descalation of the dispute for the wellbeing of the spirits trade either side of the pond.

“The US-EU spirits sector is the model for fair and reciprocal trade, having zero-for-zero tariffs since 1997. The US spirits sector supports more than $200 billion in economic activity, 1.7 million jobs across production, distribution, hospitality and retail, and the purchase of 2.8 billion pounds of grains from American farmers.

"We urge President Trump to secure a spirits agreement with the EU to get us back to zero-for-zero tariffs, which will create US jobs and increase manufacturing and exports for the American hospitality sector. We want toasts not tariffs.”

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