Posted on 08/06/2025 8:17:46 AM PDT by lasereye
The United States' 15% tariff on EU goods could reduce the value of alcohol sales by almost $2 billion and put 25,000 U.S. jobs at risk, a group of 57 alcohol industry groups wrote in a letter sent to President Trump on Tuesday.
The letter was signed by organisations representing major European producers, including Diageo and Pernod Ricard, U.S. whiskey and wine producers, as well as glass suppliers, retailers and restaurants.
Washington and Brussels agreed last month to a 15% import tariff on most European Union goods after talks that halved the threatened rate and averted a bigger trade war.
The negotiations did not result in the exemption for wine and spirits that the industries had pressed for.
The letter was addressed to Trump from the Toasts Not Tariffs Coalition, which is formed of trade associations mostly from the wine and spirits supply chain. It called for a better deal ensuring "fair and reciprocal trade" for those industries.
It said 25,000 U.S. jobs, including in restaurants and nightclubs, and nearly $2 billion in industry sales were at risk from the 15% tariff. It hits the sector just ahead of its busiest period, spanning October, November and December. The letter did not explain the industry's calculations.
"As we approach the critical holiday season, a period that is essential to the success of our industries, we implore you to secure this important deal for the U.S. as soon as possible," the letter read.
In a statement, the industry representatives said the tariffs would push up menu prices, damage American businesses and exacerbate existing problems and challenges.
The U.S. is by far the largest market for many European wine and spirit makers, while Europe is a major export destination for U.S. spirits like bourbon.
(Excerpt) Read more at finance.yahoo.com ...
One complaint about tariffs is that consumers end up absorbing the costs. This is one example where this would be a good thing. The cost on society that alcoholics have caused is massive.
More money. Less drunks.
Win!
arguments about how tariffs haven't boosted inflation are not valid.The opposite is also true.
Dont drunk people cause most of our problems?
Glad we agree. 😉
The Trade Act didn’t delegate unilateral tariff authority to the President. It allows some action to be taken to counteract unfair trade practices (which must be specified and specifically targeted), but that’s not what Trump is doing. A 50% tariff on India or Brazil has nothing to do with unfair trade practices, nor do these tariffs on alcohol, nor do the blanket tariffs he’s imposed elsewhere.
Trump’s arguments so far before the court have been that the mere existence of trade deficits are indicative of unfair trade practices, but that’s farcical on its face. Fortunately the courts have so far ruled against him on tariffs, and hopefully the federal circuit and SCOTUS will as well.
The Toasts Not Tariffs Coalition is opposed to the tariffs. It includes a bunch of distiller industry groups.
Anyway the idea of trying to force people to either change their lifestyle - or spend more money if they don't want to - is not my idea of conservative. It's a leftist way of thinking.
If the Scotch drinkers decide to spend the extra money, there would be no jobs created. Then it's nothing more than a tax increase. I'm guessing you would be fine with that -in which case you're in the wrong party.
You’re in the wrong political party.
Do you mean arguments that tariffs have boosted inflation aren’t valid? What about arguments that they WILL boost prices?
Are you saying the purpose of these is to reduce alcohol consumption???
No, not the purpose.
I'm guessing you would be fine with that -in which case you're in the wrong party.
You would be wrong just from your going in assumptions.
...the idea of trying to force people to either change their lifestyle - or spend more money if they don't want to ...
Alcohol is a luxury. Nobody is forcing anybody to either spend more, or change lifestyles. Those are individual life choices.
Do I want to spend more on something? Not really. But like our freedom, our economic health (i.e. strong industry and competitive economy) has a cost and doesnt survive when we are undercut by cheap foreign slave labor or product dumping. Tariffs to allow our entrepreneurs and businesses to compete and stay healthy are in our national interests.
Prime examples of this have been steel, clothing, pharmaceutical industries over the last many decades. But the unfair practices have been across the board. While I dont know the particulars of the alcohol business, I suspect that Trump would not tariff EU alcohol unless he was matching what they tax similar US goods.
Who the eff is Toasts Not Tariffs Coalition? You cant honestly tell me that American brewers would not welcome foreign competitors prices being raised. It means they sell more local product. And if ultimately it drives down EU tariffs on American goods, that would be welcome too.
I agree with your perspective on this.
As a Scotch lover, bourbon isn’t gonna cut it.
This is rich coming from an industry that thrives on the “duty free” market, since most countries have enormous tariffs on liquor.
Pick your poison.
I pay more to get products I like too. That’s my choice.
Yah it’ll bite a bit with 15% but I doubt that will cause anyone to drink less. The folks that want the imported stuff are going to get it regardless. Maybe more American brands will be bought, which is kind of the point of the tariffs.
“BTW most of Trump’s tariffs haven’t kicked in yet. So, arguments about how tariffs haven’t boosted inflation are not valid.”
Record amounts in tariffs already collected.
I can't even figure out what you're saying. They will have a choice of either consuming something else, consuming less or spending more. Those are the only possible choices. Period. What does labeling it a "luxury" have to do with it?
Those are individual life choices.
You mean the choice between changing what they consume or paying more right?
While I dont know the particulars of the alcohol business, I suspect that Trump would not tariff EU alcohol unless he was matching what they tax similar US goods.
You don't know what you're talking about. Trump is not matching tariffs at all. He's just imposing them on everything out there. If you think he's matching tariffs you haven't been paying attention.
Prior to the tariffs imposed during the [first] Trump administration, the EU had a 0% tariff on US whiskey. However, in June 2018, the EU imposed a 25% retaliatory tariff on American whiskey in response to the Trump administration's tariffs on steel and aluminum imports. The retaliatory tariff caused a significant drop in US whiskey exports to the EU. In 2021, American whiskey exports to the EU had fallen by 20% compared to 2018 levels, according to the Distilled Spirits Council of the United States
In 2023, the EU suspended the 25% retaliatory tariffs until March 31, 2025.
That is why US alcohol makers are against the tariffs.
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