Spirits and wine once again collateral damage in transatlantic trade tariffs

Toasts, not tariffs. A rallying cry that seems to have fallen on deaf ears in Brussels, where the European Commission has just announced new rebalancing tariffs on American whiskey, potentially subjecting it to a crippling 50% levy from April. The post Spirits and wine once again collateral damage in transatlantic trade tariffs appeared first on The Drinks Business.

Mar 13, 2025 - 11:57

Spirits and wine once again collateral damage in transatlantic trade tariffs

Toasts, not tariffs. A rallying cry that seems to have fallen on deaf ears in Brussels, where the European Commission has just announced new rebalancing tariffs on American whiskey, potentially subjecting it to a crippling 50% levy from April. Wrecking balls textured with American and European Union flags over dark stormy sky. Horizontal composition with copy space and selective focus. Trade dispute concept.

US wines, too, are in the firing line as part of a second wave of proposed measures. All this, of course, has little to do with whiskey or wine and everything to do with a tit-for-tat dispute over steel and aluminium. Drinks producers on both sides of the Atlantic can only shake their heads (and possibly reach for a stiff one) as they find themselves once again caught up in a trade war they never signed up for. SpiritsEUROPE has wasted no time in condemning the move, warning of the severe consequences for businesses, jobs, and investments. "Yet again, spirit drinks have become collateral damage in an unrelated trade dispute," said Pauline Bastidon, the organisation’s trade and economic affairs director. The zero-for-zero tariff agreement, which had once helped the transatlantic spirits trade balloon by 450% from 1997 to 2018, is at risk of being undermined. If history is anything to go by, punitive tariffs will achieve little beyond harming the very industries that rely on stable trade conditions.

Brussels vs Washington

The European wine sector is equally dismayed. The prospect of US wines being swept into this tariff tangle has left producers on both sides deeply concerned. "We urge the European Commission and member states to protect the economic vitality and diversity of the wine sector by removing wine from the final list of retaliation," industry representatives declared. Retaliatory tariffs, they argue, will only lead to job losses, stalled investments, and higher prices for consumers. While policymakers engage in brinkmanship over metals, the real casualties will be small businesses, rural economies and wine lovers who might find their favourite bottle suddenly more expensive. The frustrating part? The spirits and wine sectors are among the most interconnected industries globally. Brands, producers and distributors operate across borders in a web of investments, employment and cultural exchange. Tariffs disrupt this delicate ecosystem and, as history has shown, tend to invite retaliatory measures that escalate rather than resolve disputes. With the clock ticking towards the 1 April implementation date, industry voices are growing louder in urging both the EU and US to keep drinks out of their political squabbles. To paraphrase the late, great Winston Churchill, jaw-jaw is better than war-war. Or in this case, perhaps we should say, clink-clink is preferable to tax-tax. Whether Brussels and Washington will heed the call remains to be seen, but for now, drinks producers on both sides are bracing for yet another unnecessary hangover.