American Spirits Face New Tariffs In European Union

The European Union has expanded tariffs on American goods including several spirits categories. Twenty trade associations, including DISCUS and WSWA, among others, have released a statement imploring the E.U. to abandon the escalation. While American whiskies are already under tariffs in the E.U., the new round of 25% levies includes rum, brandy, vodka, and vermouth, and goes into effect today.

In a statement, the trade groups wrote, “Hospitality businesses and our consumers, as well as producers, wholesalers, and importers of distilled spirits, wine, and beer are being slammed from both sides of the Atlantic in an aircraft dispute wholly unrelated to the drinks business.” The groups added that the trade war has already stressed businesses facing existential threats from the Covid-19 pandemic and related shutdowns.

According to DISCUS, American whiskey exports to the E.U. (which includes the U.K. until it departs the E.U. customs union) have fallen 41%, costing producers more than $300 million, since the E.U.’s 25% retaliatory tariff went into effect in June 2018.—Shane English

Tagged : Tariffs

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