USTR Proposes Additional Retaliatory Tariffs on EU Spirits

Distilled Spirits Council of the U.S. said more tariffs would only escalate trade tensions across the Atlantic and further jeopardize American companies and hospitality jobs already under duress as a result of COVID-19.

“EU and U.S. distilled spirits companies have suffered enough as a result of this trade war,” DISCUS said in a statement.  “Since October 18, 2019, the U.S. has imposed a 25% tariff on imports of Single Malt Scotch Whisky; Single Malt Irish Whiskey from Northern Ireland; and liqueurs and cordials from Germany, Ireland, Italy, Spain, and United Kingdom.”
Those tariffs were in response to 25% tariffs imposed by the EU

Since June 22, 2018, the EU has imposed a retaliatory tariff of 25 percent on all U.S. Whiskey imports.  According to a new DISCUS report Monday (6/22),  marking the two-year tariff anniversary, American Whiskey exports to the EU have tumbled by 33% and cost $300 million since the EU’s 2% retaliatory tariff went into effect.

“The longer these disputes go unresolved, the greater the threat of even more tariffs on our industry,” DISCUS said, adding:

“The EU has stated it may impose retaliatory tariffs this spring on U.S. rum, vodka, and brandy in its parallel case at the WTO concerning Boeing.  In addition, the EU is scheduled to increase its retaliatory tariff on American Whiskey to 50 percent in spring 2021.

“We urge the Administration and our EU trading partners to de-escalate this trade dispute by simultaneously removing the U.S. tariffs on EU beverage alcohol products and the EU’s tariff on American Whiskey,” DISCUS said.