Distilled Spirits Council President and CEO Chris Swonger Statement in Response to EU Decision to Not Include American Whiskey or other American Spirits on its Retaliatory Tariff List
“This is great news and a huge sigh of relief for anxious distillers across the country who were staring down a potential 50% tariff on American Whiskey.
“It’s a positive first step toward getting the U.S.-EU spirits sectors back to zero-for-zero tariffs and untangling distilled spirits products from wider trade disputes.
“The spirits sector is the model for fair and reciprocal trade. For more than two decades, large and small distilleries scattered across the United States thrived with zero-for-zero tariffs.
“We recognize that President Trump is working to secure fair and reciprocal trade and urge the administration to ensure the permanent return of zero-for-zero tariffs on spirits trade, which will benefit American distillers, farmers, hospitality workers and spirits consumers.”
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Background:
- The U.S.-EU spirits sector had fair and reciprocal zero-for-zero tariffs from 1997 up until the EU imposed a 25% retaliatory tariff on American Whiskey in 2018.
- Due to the EU’s retaliatory tariff, American Whiskey exports to the EU, the largest American Whiskey export market, plunged 20%, from $552 million to $440 million (2018-2021).
- During the last three years that the tariffs have been suspended, American Whiskey exports to the EU surged nearly 60%, climbing from $439 million in 2021 to $699 million in 2024.
- Nearly 86% of U.S. spirits exports ($2.1 billion) go to countries that eliminated tariffs on U.S. spirits. In exchange, the U.S. opened its market for imported spirits by eliminating tariffs. As a result, approximately 98% of spirits imported into the U.S. originate from countries that have eliminated tariffs on U.S. spirits exports.
- In 2024, approximately 50% of U.S. spirits were exported to the EU (totaling $1.2 billion), making it the largest export market.