US-EU deal lowers tariff to 15%
The US’s threatened 30% tariff on European goods has been slashed in half after the two nations signed a deal yesterday (27 July).
The rate is half of what US president Donald Trump had threatened in the lead up to the tariff deadline on 1 August 2025.
On 12 July, Trump had declared a 30% tariff in letters sent to the heads of state for the EU and Mexico, up from the 20% he had initially proposed.
The agreement was struck after negotiations between Trump and the European Commission’s president, Ursula von der Leyen, in Scotland this weekend.
In the announcement Trump said: “I think it’s the biggest deal ever made.”
The president and CEO of trade body the Distilled Spirits Council of the US (Discus), Chris Swonger, expressed optimism following the news and what it could mean for both US and EU spirits producers.
“This is great news for US and EU relations and we greatly appreciate president Trump’s leadership,” he said. “We are optimistic that in the days ahead this positive meeting and agreement will lead to a return to zero-for-zero tariffs for US and EU spirits products, which will benefit not only our nation’s distillers, but also the American workers and farmers who support them from grain to glass.
“For more than 20 years, large and small distilleries across the US have flourished under a tariff-free relationship with the EU, our largest export market. It’s time to get back to toasts not tariffs.”
The tariff war has escalated trade tensions between the US and EU this year, with the EU Commission sharing intentions to impose counter tariffs on US goods, such as a retaliatory 50% rate on American whiskey.
The EU is the biggest market for US spirits exports.
The nation'[s exports for US spirits amassed US$1.2 billion in 2024, with the next biggest market, Canada, at US$221 million.
Trump’s global tariff agenda has dominated the discourse for the spirits industry this year.
In May, Trump announced a deal with the UK that would cap its tariff rate at 10%.
In the March 2025 issue of The Spirits Business, we looked at how brands were navigating the impact of tariffs, should they come into play.
Trump placed a 25% tariff on Canadian goods, which resulted in American spirits sales plummeting by double digits after US products were pulled from shelves.
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