Permanent EU-US spirits deal called for on both sides of Atlantic
The coalition Toasts Not Tariffs is pleading with president Trump to implement fair and reciprocal trade policies with the EU.
On 27 July 2025, European Commission president Ursula von der Leyen and the US president announced a bilateral agreement on tariffs and trade. As part of its implementation, Trump signed an Executive Order on 31 July establishing a 15% tariff ceiling on imports of EU products into the US.
Then, on 1 August, Trump implemented a widespread tariff policy that does not include any provisions on spirits categories, geographically-protected or otherwise.
Late last week, Discus (the Distilled Spirits Council of the US) slammed the deal for failing to protect spirits, and now, Toasts Not Tariffs, a coalition of 57 associations representing all three tiers of the US alcohol industry, has issued a letter to Trump once again asking him to spare the industry.
“Mr president, we need toasts, not tariffs, as we head into the most important season for our industry,” the letter reads, later noting that a 15% tariff on the EU could result in more than 25,000 American job losses and nearly US$2 billion in lost sales.
“Our sectors stand as a model of mutually beneficial trade, and the livelihoods of those working within it depend heavily on international trade,” the letter continued.
In between Trump administrations, the spirits sector grew thanks in part to zero-for-zero tariffs that allowed the US and EU to exchange goods freely. The EU is the largest export market for US spirits bringing in US$1.2 billion in 2024.
‘Unbalanced and unsustainable’
SpiritsEurope, the representative body for the spirits industry at European level, has also weighed in on the matter, sharing that it regrets that the EU-US political agreement has, for now, failed to secure the long-overdue restoration of the zero-for-zero framework for spirits.
“We welcome the broader principle of an agreement to de-escalate trade tensions and provide greater predictability to businesses,” said Hervé Dumesny, director general of SpiritsEurope. “While we thank the European Commission for its ongoing efforts to include spirits in the list of exemptions, the failure thus far to reinstate zero-for-zero for our products is a missed opportunity.
“The continued application of US tariffs on EU spirits, now at 15%, places our products at a substantial competitive disadvantage, limits consumer choice, and undermines investment and growth in our sector on both sides of the Atlantic.”
Originally agreed in 1997, the zero-for-zero arrangement eliminated tariffs on virtually all spirits traded between the EU and the US.
It proved to be a powerful engine of economic exchange, boosting transatlantic spirits trade by 450% between 1997 and 2018, spurring cross-investment, and strengthening the cultural and economic bonds between our two sectors.
SpiritsEurope noted that European spirits enjoy strong demand with American consumers, driving substantial growth and job creation both in US retail and hospitality and in the EU regions where these products are made.
“This situation remains unbalanced and unsustainable,” Dumesny added. “We call on both the EU and the US to stay engaged at the negotiating table and secure the full restoration of the zero-for-zero framework as soon as possible. This must include the permanent removal of US tariffs on EU spirits and the complete repeal of any suspended EU retaliatory measures on US spirits.
“A truly tariff-free environment is essential to unlock the full potential of our shared industry and safeguard the many jobs it supports, from farmers and distillers to logistics, retail and hospitality across the Atlantic.”
SpiritsEurope said it stands ready to work constructively with the European Commission, US counterparts, and our industry partners to achieve a durable, balanced, and tariff-free solution that reflects the longstanding spirit of EU-US cooperation in our sector.
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