Distilled Spirits Council CEO on Tariffs: A Model for Fair Trade

EU Tariffs on American Whiskey

• 🇪🇺 The EU is proposing a 50% tariff on American whiskey in retaliation for US actions.
• 🇺🇸 This follows a previous 25% tariff imposed by the EU in 2018 on American whiskey, which led to a 20% decline in exports.
• 🤝 The Distilled Spirits Council emphasizes that the spirits industry is intertwined and united in opposing these retaliatory tariffs.

History of US-EU Spirits Trade

• 📜 For over 22 years, the US and EU had a zero-for-zero tariff agreement, fostering significant growth.
• 📉 The EU's 2018 tariff disrupted this, turning spirits trade into a 'tit for tat' scenario.
• 💡 The Council advocates for returning to zero-for-zero tariffs as a mutually beneficial model.

Broader Trade Implications

• 🔗 The CEO warns against linking unrelated trade issues, such as steel and aluminum, to the spirits industry, turning it into a bargaining chip.
• 🌍 The industry is a model for fair and reciprocal trade, thriving in 51 export markets without tariffs.
• 📈 Efforts are ongoing to reduce high tariffs in other markets, like India's 150% tariff on whiskey.

Economic Impact and Growth

• 🏘️ The number of distilleries in the US has grown from about 60 to over 3,100, many small businesses.
• ✈️ These distilleries rely on export markets for growth, making tariff-free trade crucial.
• 🤝 The US spirits market also supports international producers, highlighting the intertwined nature of global spirits trade.

Call for Resolution

• 💼 The industry is asking President Trump to prioritize a deal that separates spirits trade from broader geopolitical issues.
• 🌾 The sector is vital, connecting agriculture to hospitality and supporting American jobs and economic vitality.
• ✅ Fair and reciprocal trade, including zero-for-zero tariffs, is essential for the industry's thriving.