Wine and spirits, which had hoped to negotiate a zero-for-zero framework, have been disappointed to find themselves subject to the 15% import rate for European products entering the US.
Toasts not Tariffs, a coalition of 57 US associations and state guilds, says this will not only affect European businesses, but ones in the US as well.
Yesterday, it sent a letter to US President Donald Trump, calling on a special agreement for wine and spirits to benefit businesses on both sides of the Atlantic.
“We reiterate our urgent request that the US and EU come to an agreement to secure fair and reciprocal trade on spirits and wine,” reads the letter to the president.
“The damage to the US hospitality sector resulting from tariffs on wines and spirits will have lasting, negative impacts. Jobs in the hospitality industry include those at restaurants, bars, taverns, nightclubs, etc.
“We estimate that a 15% tariff on EU wine and spirits could result in more than 25,000 American job losses and nearly $2 billion in lost sales.”
Time is of the essence: as the industry approaches the ‘critical’ holiday selling season.
Unlike other goods, wine and spirits are often protected by geographical indication, which means manufacturing cannot simply be relocated to a different location.
European spirits enjoy strong demand from the US: with products such as cognac, calvados and Irish whiskey protected by geographical indicators. American whiskey has enjoyed strong growth in the EU in tariff-free times.
In Europe, industry body spiritsEUROPE remains optimistic that a zero-for-zero framework can be reached.
The 15% tariff places EU products ‘at a substantial competitive disadvantage, limits consumer choice, and undermines investment and growth’, said Hervé Dumesny, Director General of spiritsEUROPE.
“This situation remains unbalanced and unsustainable,” said 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.”
