Whiskey Industry CEO on Devastating EU Tariffs and Trade Disputes

Impact of EU Tariffs on American Whiskey

• 🥃 The Distilled Spirits Council of the U.S. is concerned about the EU's potential imposition of a 50% tariff on American whiskey, which they describe as "devastating."
• 📉 A previous 25% tariff imposed by the EU in response to U.S. steel and aluminum tariffs resulted in a 20% decline in American whiskey exports.
• 🚫 The industry advocates for being excluded from trade disputes, as they have historically thrived under zero-for-zero tariff agreements with partners like Canada and Mexico.

Growth and Economic Contribution of the Spirits Industry

• 🌱 The U.S. distilled spirits industry has experienced significant growth, with the number of distilleries increasing from over 50 to more than 3,100 in the past 20 years.
• 🌾 Tariffs negatively impact the entire supply chain, from agriculture partners providing grains to distillers and the broader hospitality industry.
• 🤝 Collaboration is key, with various whiskey industries (American, Canadian, Scotch, Irish, Cognac) working together to advocate for the removal of tariffs.

Global Trade and Reciprocal Tariffs

• 🎯 The industry supports the U.S. administration's goal of fair and reciprocal trade, citing India's previous 150% tariff on American whiskey.
• 📈 While grateful for a recent reduction in India's tariff on Bourbon, the ultimate goal is to reach zero tariffs to allow American products to compete effectively.
• ⚖️ The current situation is seen as a lose-lose proposition for trading partners who have historically benefited from zero-tariff agreements.