Irish whiskey faces 15pc Trump tariff from tomorrow

Irish Independent

5 days ago

Under the outline deal reached between Mr Trump and Ursula von der Leyen, the president of the European Commission, at Turnberry golf course in Scotland last Sunday, some goods were to be exempted from the 15pc tariff regime that comes into force on August 1.
The so-called 'strategic products' that were getting 'special treatment' included EU aircraft and aircraft parts, certain chemicals and drug generics, and the commission said both sides had agreed to keep working to add more products to the list.
However, today the commission spokesman Olof Gill indicated that no agreement had been reached for a lower tariff rate on alcoholic drinks.
"The commission remains determined to achieve and secure the maximum number of carve-outs including for traditional EU products such as wine and spirits,' Mr Gill told a news conference. 'It is not our expectation that wine and spirits will be included as an exemption in the first group announced by the US tomorrow. And therefore that sector will be captured by the 15pc ceiling.'
The Irish whiskey sector had benefited from zero-for-zero tariffs between the US and EU over the last two decades, but is now subject to a 10pc rate. Ireland exported €410m worth of whiskey to the US last year, the equivalent of 34,000 tonnes.
Eoin Ó Catháin of the Irish Whiskey Association said: 'We note media reports today which indicate that our products will face a 15pc tariff when exporting to the USA from August 1. We understand that negotiations will continue past this deadline, and a return to the zero-for-zero remains a priority for the spirits sector in both the USA and the EU.
'The application of this tariff will increase costs for both exporters and consumers, and will not be without knock-on effects on the hospitality and tourism sectors in the USA.
'The zero-for-zero trade arrangement, which removed tariffs on our products in 1997, worked well for over three decades. It has never been more important to return to this as soon as possible."
A 15pc tariff will hit European wine-makers particularly badly, as they are already grappling with a stronger euro value against the dollar.
It is expected that President Trump will sign an executive order tomorrow putting the new tariff regime in place, but talks will continue afterwards on details in the agreement. Reuters has quoted a senior diplomat close to the negotiations as saying that tariffs on wine and spirits will still be discussed, but 'probably in the autumn'.
The US and EU are expected to issue a joint statement tomorrow setting out more detail of the trade deal, although there have been reports this could be delayed as 'more time is required' to finalise the text.
Mr Gill said it is the EU's clear understanding that the US will implement the 15pc deal from tomorrow, including the exemptions outlined in last Sunday's headline announcement. 'This means that, from tomorrow, we will have the immediate tariff relief we have worked so hard to achieve and thus a far stronger position of stability and predictability for EU businesses and consumers," he added.