Calling new U.S. tariffs announced by President Trump on imports of European Union steel and aluminum “unjustified,” the EU Commission reimposed a 50% tariff on U.S. alcoholic and nonalcoholic beverages and other products effective April 1.
The EU also put forth a new range of countermeasures on U.S. exports responding to new U.S. tariffs affecting more that 18 billion euros of EU exports that will be effective in mid-April.
In total, the EU said, the EU countermeasures could apply to U.S. exports worth up to 26 billion euros ($28.32 billion).
DISCUS Response
Chris Swonger, president/CEO, Distilled Spririts Council of the U.S., responded to the EU announcement with a statement:
“For the past three years that the EU’s 25% tariff on American Whiskey has been suspended in the steel and aluminum dispute, U.S. distillers have worked hard to regain solid footing in our largest export market. The EU’s announcement to reimpose these tariffs on American Whiskey at 50% on April 1 is deeply disappointing and will severely undercut the successful efforts to rebuild U.S. spirits exports in EU countries.
“The U.S. and EU spirits sectors enjoyed fair and reciprocal zero-for-zero tariffs between 1997 and 2018. Transatlantic trade in spirits increased by nearly 450% during this time.
“Many spirits products are recognized as “distinctive products” by the U.S. 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.
“Reimposing these debilitating tariffs at a time when the spirits industry continues to face a slowdown in U.S. marketplace will further curtail growth and negatively impact distillers and farmers in states across the country.
“We urge the U.S. and EU governments to come to a resolution that gets our spirits industry back to zero-for-zero tariffs. This is a model that has allowed spirits exports between the U.S. and EU to flourish and is in line with President Trump’s vision for fair and reciprocal trade.”