US tariffs on EU-made products could reduce alcohol sales by almost $2bn and put 25,000 jobs at risk, a coalition of alcohol industry groups has warned in an open letter to US President Donald Trump.
The letter, signed by organisations representing major European suppliers including Diageo and Pernod Ricard – as well as US whiskey and wine producers, glass suppliers, retailers and restaurants – called for tariff-free trade for wine and spirits to be included in the final trade agreement between the US and EU.
“Mr President, we need toasts, not tariffs, as we head into the most important season for our industry,” the letter – co-ordinated by the Toasts Not Tariffs Coalition – read. “As part of your ‘America first’ trade policy, we seek your leadership to secure fair and reciprocal tariff-free trade for US and EU spirits and wines as soon as possible.”
Wine and spirits were unique products, often tied to specific geographical regions around the world, the coalition argued.
“Many US and EU spirits are recognised as ‘distinctive products’ and can only be made in their designated countries – bourbon and Tennessee whiskey in the US, and cognac in France,” its letter said. “Similarly, wine is linked to its place of origin through American Viticultural Areas, appellations of origin or geographical indications. Consequently, production of these products cannot simply be relocated to circumvent tariffs.”
Chris Swonger, CEO of trade organisation Distilled Spirits Council of the US (DISCUS), urged Trump to “safeguard the US distilled spirits sector by returning to permanent, tariff-free trade”.
“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,” he added.
The alcohol industry had last week lobbied hard for an exemption to 15% tariffs imposed by Washington on EU imports from 1 August.
However, a deal could not be agreed in advance of tariffs coming into effect.
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