
US spirits industry warns of ‘debilitating' retaliatory whiskey tariffs from Europe
The US spirits industry is bracing for pain after the European Union targeted American whiskey in retaliation against President Donald Trump's steel and aluminum tariffs.
The EU's decision to spike tariffs on American whiskey to 50% is 'deeply disappointing and will severely undercut the successful efforts to rebuild US spirits exports in EU countries,' Chris Swonger, CEO of the Distilled Spirits Council of the United States (DISCUS), said in a statement released Wednesday.
Ignited by the pandemic, sales of American whiskey have grown nearly 20% since 2020 — topping more than $5 billion last year, according to the council's economic data. Sales of whiskey and other spirits softened, however, in 2024 as people dialed back their drinking amidst the rising cost of living. As a result, some companies, like Brown-Forman, laid off about 700 employees in January.
'Reimposing these debilitating tariffs at a time when the spirits industry continues to face a slowdown in US marketplace will further curtail growth and negatively impact distillers and farmers in states across the country,' Swonger said.
Europe is a growing and significant customer for US whiskey, with exports soaring over the last three years by 60% to $699 million after earlier tariffs were suspended, according to DISCUS.
Trump's 25% tariff on all steel and aluminum imports started Wednesday. The EU responded to what it described as 'unjustified' tariffs by announcing countermeasures on up to $28 billion of American goods, including boats, bourbon and motorbikes. EU's retaliation starts in April.
'We urge the US and EU governments to come to a resolution that gets our spirits industry back to zero-for-zero tariffs,' Swonger added.
Last week, the CEO of Jack Daniel's whiskey maker Brown-Forman blasted the decision by officials in Canada to pull American-made spirits off store shelves in response to Trump's tariffs on Canada.
'That's worse than a tariff because it's literally taking your sales away,' Brown-Forman CEO Lawson Whiting said in an earnings call. However, he noted that Canada accounts for just 1% of the company's total sales, so the company can 'withstand' the losses.
But Eric Gregory, the president of the Kentucky Distillers Association, which represents the broader spirits industry in the state, drew attention last week to the wider impact from tariffs in a statement.
'Unfortunately, the return of retaliatory tariffs on American whiskey will have far-reaching consequences across Kentucky, home to 95% of the world's Bourbon,' Gregory said.
'That means hard-working Americans – corn farmers, truckers, distillery workers, barrel makers, bartenders, servers, and the communities and businesses built around Kentucky Bourbon will suffer.'
Shares of spirits companies fell in midday trading, with Brown-Forman (BF.B) dropping nearly 7%, Remy Cointreau falling about 4% and Diageo (DEO) slipping nearly 2%
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Hill
14 minutes ago
- The Hill
Vance on LA unrest: Newsom should ‘look in mirror' and stop blaming Trump
Vice President JD Vance on Tuesday tore into California Gov. Gavin Newsom (D) for suggesting the unrest in Los Angeles is a consequence of federal involvement in state and local law enforcement efforts. 'Gavin Newsom says he didn't have a problem until Trump got involved,' Vance wrote in a post on X, attaching two photos that he said were taken before Trump ordered the National Guard to protect border patrol agents in California. One depicted rioters appearing to attack a 'border patrol' van, and another depicted a car set ablaze. The Hill was not able to verify the authenticity of the photos. 'Does this look like 'no problem'?' Vance asked. Vance suggested Newsom and Los Angeles Mayor Karen Bass 'fomented and encouraged the riots,' with the goal of promoting mass migration into the U.S., adding, 'It is their reason for being.' 'If you want to know why illegal aliens flocked to your state, stop accusing Donald Trump. Look in the mirror,' Vance said. 'If you want to know why border patrol fear for their lives over enforcing the law, look in the mirror.' Vance pointed to California's Medicaid expansion last year to low-income undocumented immigrants as an example of a policy that has 'encouraged mass migration into California.' Newsom has since proposed ending new Medicaid enrollment for undocumented adults, but his proposal faces resistance from the state legislature. 'Your policies that protected those migrants from common sense law enforcement. Your policies that offered massive welfare benefits to reward illegal immigrants. Your policies that allowed those illegal migrants (and their sympathizers) to assault our law enforcement. Your policies that allowed Los Angeles to turn into a war zone,' Vance continued. 'You sure as hell had a problem before President Trump came along. The problem is YOU,' Vance added. Vance's post is the latest in a back-and-forth between the administration and Newsom, who has resisted Trump's extraordinary steps to deploy 4,000 National Guard troops to the area and mobilize 700 active-duty marines. Newsom has insisted that the situation was under control before the Trump administration escalated tensions by making a provocative show of force. He accused Trump of 'intentionally causing chaos, terrorizing communities and endangering the principles of our great democracy.' After Trump suggested his border czar arrest Newsom, the California governor responded by saying, 'The President of the United States just called for the arrest of a sitting Governor. This is a day I hoped I would never see in America.' 'I don't care if you're a Democrat or a Republican this is a line we cannot cross as a nation — this is an unmistakable step toward authoritarianism,' Newsom added Monday afternoon. Vance then replied to Newsom, saying, 'Do your job. That's all we're asking.' 'Do YOUR job. We didn't have a problem until Trump got involved. Rescind the order. Return control to California,' Newsom responded, prompting Vance's latest response.


Axios
16 minutes ago
- Axios
Newsom denies Trump spoke to him before deploying more National Guards
California Gov. Gavin Newsom (D) on Tuesday said President Trump did not speak with him, despite deploying national military personnel to respond to Los Angeles protests. Why it matters: Trump claimed that he had spoken with the governor and criticized his handling of the rallies against Immigration and Customs Enforcement's actions. "There was no call. Not even a voicemail," Newsom said on X. "Americans should be alarmed that a President deploying Marines onto our streets doesn't even know who he's talking to." Driving the news: Trump, speaking to the media on Tuesday, said he last talked with Newsom "a day ago." "Called him up to tell him, got to do a better job," Trump said. "He's doing a bad job, causing a lot of death and a lot of potential death." Reality check: California authorities have not reported any deaths during the protests. A total of 72 people have been arrested over the past weekend, with five police officers being injured, according to local media report on Monday Context: The Marines deployed to LA have not yet responded to immigration protests.


Axios
17 minutes ago
- Axios
Black Caucus chair says Trump's actions on L.A. are impeachable
Congressional Black Caucus chair Yvette Clarke (D-N.Y.) said Tuesday she believes President Trump mobilizing the National Guard and deploying Marines to Los Angeles rises to the level of an impeachable offense. Why it matters: It's a break with House Democrats' general aversion towards impeachment from the head of one of their most powerful groups. The comment comes amid growing animosity between Democrats and the Trump administration over the president's use of law enforcement to carry out a campaign of mass deportations. The White House did not immediately respond to a request for comment. Driving the news: During a press conference, Clarke was asked if Trump's actions to quell protests in L.A. rise to the level of an impeachable offense "I definitely believe it is," she responded, "But we'll cross that bridge when we get to it." Clarke and other Democrats have argued that Trump has violated the U.S. Constitution by mobilizing the National Guard over Newsom's objections. Reality check: Democrats are highly unlikely to pursue an organized impeachment effort against Trump any time soon. Two rank-and-file members, Reps. Shri Thanedar (D-Mich.) and Al Green (D-Texas), have spearheaded their own rogue impeachment initiatives, but most Democrats have dissociated themselves with those efforts. Most Democrats are clear-eyed that impeachment would be doomed to failure with Republicans in control of Congress — and they often note that Trump won in 2024 despite previously being impeached twice. What they're saying: House Democratic Caucus chair Pete Aguilar (D-Calif.) told reporters at a subsequent press conference, "I've said before that ... House Democrats aren't focused on impeachment today."