EU's tariffs will be 'devastating' for spirits sector, industry says

Reuters

Wed, Mar 12, 2025, 7:18 AM 2 min read

LONDON (Reuters) - European Union tariffs affecting U.S. spirits similar bourbon whiskey volition beryllium "devastating" for the liquor industry, commercialized associations connected some sides of the Atlantic said connected Wednesday.

The European Commission said earlier connected Wednesday it would enforce tariffs connected 26 cardinal euros ($28.31 billion) worthy of U.S. goods from adjacent month, ramping up a planetary commercialized warfare successful effect to U.S. tariffs connected alloy and aluminium.

The determination volition revive suspended tariffs connected bourbon whiskey, and treble the complaint to 50%, said Ulrich Adam, manager wide of commercialized assemblage spiritsEurope, which represents apical U.S. and European spirits producers similar Diageo and Jack Daniel's shaper Brown-Forman. It could besides spot caller tariffs imposed connected a big of different products, with tequila and gin connected the database of imaginable targets.

This would person "devastating consequences" for spirits companies connected some sides of the Atlantic, spiritsEurope said successful a statement, pointing retired EU companies that nutrient spirits successful the United States could beryllium hit.

The intensifying planetary commercialized warfare comes arsenic the spirits manufacture grapples with a crisp downturn successful income pursuing a post-COVID boom, and steep levies imposed by China connected European brandy, hitting cognac especially.

"The marketplace is precise weak," spiritsEurope's Adam said, pointing to precocious inflation, anemic economies and stretched household income. "It's different large blow".

Any attempts by producers to summation prices to offset tariffs would apt pb to marketplace stock losses arsenic the manufacture is precise competitory and terms sensitive, helium continued.

U.S. spirits companies are heavy invested successful Europe, putting jobs astatine risk, spiritsEurope's connection added.

The Distilled Spirits Council of the United States said the "debilitating tariffs" from American whiskey's largest export marketplace volition further curtail maturation and deed distillers and farmers crossed the United States.

American whiskey exports to the EU surged 60% successful the past 3 years to $699 cardinal successful 2024, DISCUS continued, adding the erstwhile tariffs connected bourbon imposed successful 2018 caused a 20% decline.

Lawson Whiting, CEO of Jack Daniel's shaper Brown-Forman, told the UBS Consumer and Retail Conference successful New York that it had been trying to hole for the tariffs.

"We person done immoderate things to effort to get america prepared, but it's a pugnacious spot," helium said, adding helium was hopeful the 2 sides could resoluteness the quality earlier the tariffs travel into force.

($1 = 0.9184 euros)

(Reporting by Emma Rumney, Editing by Louise Heavens and Elaine Hardcastle)