A coalition of 57 alcohol industry groups has raised alarm over the United States’ decision to impose a 15 per cent tariff on European Union goods, warning that it could lead to nearly $2 billion in lost sales and threaten 25,000 American jobs.
In a letter sent to U.S. President Donald Trump, the industry groups—including major European producers like Diageo and Pernod Ricard, alongside American whisky makers, wine producers, glass suppliers, retailers, and restaurant owners—called for a reconsideration of the new trade deal.
According to Reuters, the industry groups operate under the umbrella of the Toasts Not Tariffs Coalition, which includes various associations along the wine and spirits supply chain. The letter expressed deep concerns over the exclusion of alcohol products—particularly wine and spirits—from the new trade agreement, despite the overall reduction in tariffs from the initially proposed rate.
Washington and Brussels had earlier agreed to slash the import tariff on most EU goods from a higher proposed rate to 15 per cent, preventing a full-blown trade war. But alcoholic beverages were left out of the exemption list, drawing criticism from the industry.
The coalition warned that the move would not only increase menu prices at bars and restaurants but also worsen the challenges already facing the sector, especially with the peak sales period from October to December fast approaching.
They argued that the new tariff could damage American businesses that depend on both domestic and imported alcohol, including jobs in restaurants, nightclubs, and logistics. With rising living costs and a growing shift towards healthier lifestyles, wine and beer sales have already been under pressure, with spirits gaining more market share in recent years.
The industry also stressed that the United States remains the largest export market for many European wine and spirit producers, while Europe is a key destination for American spirits such as bourbon.
In what appears to be a cautious response, the European Union has included some American alcohol products on a possible list for retaliatory tariffs but has held off on enforcement for at least six months.
