Latest news with #IrishWhiskeyAssociation
Agriland
3 hours ago
- Business
- Agriland
Any Increase in Us Tariffs Would Be Devastating Irish Whiskey Association
President Donald Trump's proposed 30% tariffs rate on EU goods entering the United States "would be devastating for the Irish Whiskey and wider drinks sector" an industry group has warned. The Irish Whiskey Association (IWA) the all-island trade body for the sector, said any escalation in tariffs by President Trump would have a significant impact. In a statement the association said: "This move would inflict unnecessary damage on a transatlantic trade relationship that has delivered huge economic value to both Ireland and the US". President Trump has said the 30% tariffs rate is scheduled to come into effect from August 1. An additional 10% baseline tariffs rate has been in place on all US imports since April but the US president has frequently threatened further increases to these rates - including the 30% from next month. According to the IWA the 10% tariffs have already caused "real economic pain for Irish Whiskey producers". The association said this has resulted in "stalled production and delayed investment and, in some cases, the closure of otherwise viable businesses". It is concerned that any escalation by the EU on relation to retaliatory measures could "unnecessarily escalate matters" for the sector - particularly as spirits are one of the items included in the EU retaliatory measures currently under discussion. The IWA is now calling for: Both sides to continue negotiating to seek to remove all barriers to trade; The European Commission to keep US Whiskey/bourbon and other drinks products off any retaliation list; The Irish Government to provide as much support as it can to the Irish whiskey sector such as reducing production costs and establishing sustainable financing structures. The association has highlighted that last year there were more than 16 million cases of Irish whiskey sold worldwide, and the US was a "central" market. It has also warned that the "zero-for-zero tariff trading environment between the EU and US has served the spirits industry well for nearly 30 years".
Agriland
3 hours ago
- Business
- Agriland
Premium crops 'crucial to economic livelihood' of significant number of farmers
The Irish Farmers' Association (IFA) has met with the drinks industry to discuss the current market outlook and stress the importance of supporting premium crop growers. The situation remains exceptionally challenging at present due to a combination of economic uncertainty arising from US tariffs, and inflation and cost of living pressures, the IFA said. Commenting after the discussion with representatives from Drinks Ireland and the Irish Whiskey Association, IFA grain vice-chair John Murphy said it was a constructive and informative meeting. 'It could be well into 2026 before full clarity exists within the market and this news will be concerning for barley producers,' John Murphy said. The US is by far the largest importer of Irish whiskey and a boom in sales so far this decade has resulted in a significant increase in demand for malting and adjunct barleys at farm level, the IFA said. 'Premium crops are crucial to the economic livelihoods of a significant number of tillage farmers,' Murphy continued. The Irish Whiskey Association informed the IFA that work is ongoing to ensure an increase of sales of Irish whiskey in other emerging markets, such as India and South Africa. However, the association has highlighted barriers to trade also being present in these regions and pivoting sales will not happen overnight. IFA stressed to the Irish Whiskey Association the importance of the whiskey sector using 100% Irish malting barley. The IFA malting barley committee said it is aware that some distillers have started to use imported European malt in recent times, which it described as a "disappointing development". 'Both the tillage sector and the whiskey sector are facing a significant threat to their viability at present and it is critically important producers and end users work together to support each other,' IFA's Murphy added. According to the Irish Whiskey Association, last year, there were more than 16 million cases of Irish whiskey sold worldwide, and the US was a "central" market. The association said that the "zero-for-zero tariff trading environment between the EU and US has served the spirits industry well for nearly 30 years".
Irish Independent
11 hours ago
- Business
- Irish Independent
Irish whiskey faces 15pc Trump tariff from tomorrow
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.
Irish Examiner
18-07-2025
- Business
- Irish Examiner
From Midleton to Tokyo: Selling Irish whiskey to the Japanese
Eoin Ó Catháin, director of the Irish Whiskey Association: 'Japan is one of the most interesting and exciting whiskey markets in the world, and I am heartened to see the hard work of Irish whiskey producers pay off.'
Extra.ie
07-07-2025
- Business
- Extra.ie
Irish distilleries are running dry as Trump's trade war hits exports
Irish distilleries are running dry as Donald Trump's trade war hits exports, stakeholders have warned. Dennis O'Flynn, director of Clonakilty Distillery and vicechair of the Irish Whiskey Association, yesterday warned that 90% of distilling capacity is now on hold. The EU and US are yet to reach a trade agreement ahead of Wednesday's deadline, and as a result, most whiskey distilleries in Ireland have had to halt production. Irish whiskey is a billion-dollar industry, but the US represents more than 50% of its export market. Denis O'Flynn of Clonakilty Distillery. Pic: Supplied The White House introduced tariffs of 10% in April, and President Trump has threatened rates of between 20 and 50% should a trade agreement not be reached this week. Cabinet members have warned the 10% baseline may remain even if a deal is made. Mr O'Flynn said that even this scenario would pose an unacceptable risk to the sector in Ireland. He added: 'We can't have a concept of 10% as a new norm; it's not a new norm, it is hurting and already affecting the industry'. Pic: Shutterstock Mr O'Flynn explained that when selling a bottle of whiskey to the US, a 10% tariff brings the price of a $30 bottle to $35, but a 20% tariff could raise it to $40. He has called on the Government to ensure the Irish whiskey industry is exempt from US tariffs. He said that if the purpose of tariffs is to bring jobs back to America, 'the only effect of tariffs on Irish whiskey is punitive'. Mr O'Flynn pointed out that by law, Irish whiskey must be produced in Ireland, the same way American bourbon must be produced in America. He told RTÉ's This Week yesterday: 'It's not like we can move over to the US, we can't by law.' Minister for Enterprise Peter Burke said the Government hopes 'to get carve-outs for certain sectors that are strategically important for Europe and indeed the Irish economy, that we could have zero for zero in certain areas or at least most favoured nation status'. Mr Burke did admit, however, that as it stands, the Government was 'still very much in the dark on what way the framework will land'. The Fine Gael TD said the best-case scenario in the EU-US trade talks is that by tomorrow evening, the Government will have 'at minimum' a framework that would 'deliver a pathway for further negotiations'. Mr O'Flynn also stated that there were concerns around employment, saying: 'You will absolutely have direct effects.' The broader drinks industry employs over 10,000 people in Ireland. Mr O'Flynn went on to say that for the future, 'clearly we've got to look outside of the US'.
