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Discus sounds alarm on potential doubling of whiskey tariffs
The reintroduction and doubling of the EU’s retaliatory tariffs on American whiskey would reverse the “incredible and much-needed rebound in US spirits exports”, the Distilled Spirits Council of the US (Discus) has warned.
The trade body submitted a report to the office of the United States Trade Representative (USTR) last week, highlighting key foreign trade barriers impeding American spirits exports.
Top of the list of concerns was the potential return – and doubling – of EU tariffs on American whiskey exports. Part of the steel-aluminium dispute, the EU is due to reimpose its retaliatory tariff on American whiskey on 31 March 2025, but at a higher rate of 50%.
The EU’s 25% retaliatory tariff on American rum, brandy and vodka is scheduled to be reinforced on 11 July 2026, unless an agreement regarding aircraft subsidies is reached with the EU.
The aforementioned tariffs are currently suspended.
Robert Maron, Discus senior vice-president for international trade policy and market access, said: “During the past two years that the EU’s retaliatory tariffs on American whiskey have been suspended, US whiskey exports to the EU surged by more than 60%, and total US spirits exports grew to a record high of US$2.2 billion in 2023.
“If these retaliatory tariffs were to return, they would reverse this incredible and much-needed rebound in US spirits exports.”
‘Devastating’ effect
The report outlined the ‘devastating’ effect the tariffs had on American spirits exports last time they were in place.
American whiskey exports to the EU – the category’s biggest export market – plummeted by 20% from US$522 million in 2018 to US$440m in 2021.
Maron added: “US spirits exports will face a competitive disadvantage if other major spirits producers like the UK and the EU continue to secure trade agreements that eliminate tariffs on their exports, while the US fails to negotiate similar deals.
“Without reductions in tariffs, US producers will likely see their products priced higher in international markets, making them less attractive compared to tariff-free alternatives from other countries.”
Additional barriers to trade outlined in the report include several ‘priority target markets’, which have high tariffs. The EU, Brazil, Thailand, Indonesia, Peru and Costa Rica were among those listed as having discriminatory spirits taxes in place, or product markups in favour of domestically made spirits.
Furthermore, Indonesia, Chile, the EU, India, Malaysia, Thailand, Korea and Australia were cited as examples of markets considering labelling requirements and standards of identity that are inconsistent with standard international practices.
The US will vote for its next president on 5 November. Ahead of the election, The Spirits Business explored issues that are top of the list of concerns for trade bodies across the States.
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