Whiskey War: US-EU Summit Fails to Defuse Looming 50% Tariff on American Whiskey
At the US-EU Presidential Summit on October 20 in Washington DC, a stalemate emerged. US President Biden and European Commission President von der Leyen failed to kill or extend the suspension of the EU’s retaliatory tariffs on American whiskey.
Starting January 1, 2024, these tariffs will rocket back with a vengeance, spiking to an alarming 50%.
Chris Swonger, President and CEO of the Distilled Spirits Council of the US (DISCUS), voiced his concern: “The industry had high hopes that the summit would yield a deal to prevent these tariffs from resurfacing in 2024. This failure jeopardizes the recent recovery of American whiskey exports to the EU market.”
Since the EU hit pause on its 25% tariff in January 2022, American whiskey staged a comeback, soaring past pre-tariff levels. A reinstatement of the tariffs would slam the brakes on this resurgence.
Swonger continued, “We urge the Biden administration to decisively axe these crippling tariffs. Until then, the looming tariff threat will continue to stifle our growth in this pivotal international market.”
This tariff tension dates back to June 2018 when the EU slapped a 25% tariff on American whiskeys in retaliation for US tariffs on steel and aluminum. This move led to a 20% decline in American whiskey exports to the EU, dropping from $552 million to $440 million between 2018 and 2021.
However, the 2022 suspension boosted exports by 29%, reaching $556 million. From January to July 2023, exports surged by nearly 91% compared to the same period last year.
