The US-EU trade deal, signed by President Donald Trump over the weekend, imposes a 15% tariff on European goods but leaves out the wine and spirits industry. Despite being America’s top client for spirits, Europe is not included in the agreement.
US spirits imports from Europe total $1.2 billion annually, while US spirits exports to Europe amount to $10.5 billion last year. Industry leaders call for a return to “toasts, not tariffs,” hoping for a zero-for-zero tariff arrangement that would benefit American distillers and workers.
The European Commission has promised to put together an agreement for the alcohol trade market in coming weeks. The Distilled Spirits Council of the United States says eliminating tariffs entirely would be ideal, citing a 60% surge in US whiskey exports after EU tariffs were suspended.
A zero-for-zero tariff arrangement was also proposed by the European Committee of Wine Companies, which emphasizes the importance of US wine exports for the EU’s economic sustainability and rural communities. The ongoing boycott of American spirits in Canada has significantly impacted US liquor exports, with sales dropping by 66% in the country.
Source: https://www.foxbusiness.com/politics/wine-spirits-industry-left-ice-sector-overlooked-eu-us-trade-negotiations