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 ...
“Zero or low tariffs for wine and spirits are essential to U.S. producers’ export success in foreign markets,” the letter stated, pointing out that nearly 85% of U.S. spirits exports go to countries that eliminated tariffs on all U.S. spirits (such as EU, UK, Canada, Mexico, Japan and Australia), and the vast majority of U.S. wine exports go to countries where the import duty is low or zero.The coalition explained that wine and spirits are unique products because many can only be produced in certain geographical regions around the world.
Some spirits are recognized as “distinctive products” by the U.S. and its trading partners and can only be made in their designated countries such as Bourbon and Tennessee Whiskey in the U.S., Tequila in Mexico, Cognac in France and Scotch Whisky in Scotland.
Their claim about 25,000 jobs may well be exaggerated. But I don't see what the point of these kinds of tariffs is in the first place - unless it's to make Americans pay more for things. Or to collect as much tariff revenue as possible - which is a tax increase on business and consumers.
The original justification for the tariffs was reshoring of manufacturing. Tariffs on food and alcohol have nothing to do with that.
These don't even help US producers of alcoholic beverages. We don't make most of the alcoholic beverages they are slapping tariffs on, such as Scotch. Nor will we ever make them. That's why the US companies are against this.
BTW most of Trump's tariffs haven't kicked in yet. So, arguments about how tariffs haven't boosted inflation are not valid.
Trump detests alcohol. This will fall on deaf ears.
The goal is American jobs. That applies across the board. If Scotch (with tariff) becomes too expensive, drinkers will switch to Kentucky Whiskey.
That sounds more like an emotional argument than a financial or rational one. Sort of like “Kamala hates guns”. Equally dumb and low IQ.
LOL. If steak becomes too expensive, they will switch to insects.
“Or to collect as much tariff revenue as possible - which is a tax increase on business and consumers.
The original justification for the tariffs was reshoring of manufacturing. Tariffs on food and alcohol have nothing to do with that.”
It’s a voluntary tax. You only pay if you want the product.
Tariffs are also about revenue generation. A replacement for the income tax has to start somewhere.
We do sell a lot of Jameson's at a reasonable price but some of our foreign spirits are already anywhere from 50 to 100 dollars a shot. As you can imagine, we sell very, very, VERY few of those.
I think we have those mostly because the bottles look unique and just so we can say we have them.
We'll see what happens.
Sue him. Trump is acting completely outside his legal authority and the courts need to smack him down on this, hard.
Did they write a letter to Biden when he caused the price to increase because of his inflationary policies?
100% agree. Sort of like a tinpot d.
Yes they did.
Amen, bro. Trump doesn’t fall for emotional arguments. He’ll do what is best for America’s financial interests.
According to the article, we buy imported wine and spirits from EU. EU buys bourbon from us. That seems like balanced trade and the tariffs should cancel each other. I.E. use one tariff to pay the other.
Rule #1 don’t touch my drink.
In addition Putin also does not drink Like Trump so is he also infallible?
I despise tea totalars anyway, I do not trust them, unless they stopped for their own health or family reasons. I learned very early in HS to never associate with any student that did not drink, for most of their parents were on the school board and would snitch.
Our football coach knew we most all drank back in the 80% and he had no problem with it, but he would say after games..
I know you men are going to party and drink but have a sober driver and avoid those kids from parents of the school board.
I would say 90% of the football team drank at least a few times a week and we were never taken down. Our program was too strong. Our football coach was the most powerful employee of the HS, RBCHS Richmond Illinois.
J Randy Hoffmon was inducted into the Illinois HS football coaches hall of Fame a few years back.
Sadly I cannot find the article about it perhaps 10 years ago from the NW Hearld by reporter Joe Stevenson.
This touches a bit on the history
“”Sue him. Trump is acting completely outside his legal authority and the courts need to smack him down on this, hard.””
Lol!
Well I.... certainly hope you hold your breath for that to happen.
I don’t imbibe any more.
I gave up alcohol.
I did because I came to an age where I was putting on a bit of weight and I decided alcohol was “empty” calories.
Some black coffee in the morning and tap water the rest of the time is pretty much all I drink.
But as a fiscal conservative and a red blooded American, when I did drink it was not some fancy, smancy overpriced foreign stuff.
In my college days I kept it simple, PBR on tap.
As I grew older if I drank the hard stuff, it was bourbon on the rocks with a bit of water, no brand in particular, whatever was the house brand.
In my old age, I found what I suspect may have been the product of American ingenuity.
Domestic wine in a box.
Who but Americans would have thought of putting wine in a plastic bladder then stuffing it in a cardboard box which easily fit in the refrigerator.
As a fiscally conservative American, I say drink cheap and domestic or don’t drink at all.
It is very easy to avoid tariff prices; drink good old American booze.
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