Latest news with #ToastsnotTariffsCoalition
Yahoo
07-08-2025
- Business
- Yahoo
Tariffs risk $2bn lost sales, say US alcohol industry groups
US alcohol industry groups have expressed concern over the impact of tariffs on EU-made products, warning of a potential $2bn loss in sales. In a letter yesterday (6 August), the Toasts not Tariffs Coalition, comprising 57 US drinks associations and guilds, highlighted the issue to US President Donald Trump. "We estimate that a 15% tariff on EU wine and spirits could result inmore than 25,000 American job losses and nearly $2 billion in lost sales," the letter said. The EU and US secured a trade deal at the end of July, however neither side was able to agree on an exemption for wine at spirits. According to the EU wine trade association Comité Européen des Entreprises Vins, as of 1 August, a 10% tariff applied to goods being shipped to the US up until tomorrow, when a 15% tariff then comes into effect for EU wine and spirits. President Trump however also told CNBC earlier this week that the EU would face 35% tariffs if it failed to invest $600bn into the US as part of the EU-US trade deal. In its letter, the coalition pressed the President to secure a deal as the industry reaches "the critical holiday season". '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 US as soon as possible," it said. The coalition emphasised the unique nature of wine and spirits, often tied to specific regions, making relocation to avoid tariffs impractical. It also stressed the importance of international trade for the industry, noting that most US wine exports go to countries with low or zero import duties. 'Our sectors stand as a model of mutually beneficial trade, and the livelihoods of those working within it depend heavily on international trade,' the letter read. It added that nearly 86% of US spirits exports are to countries that have eliminated tariffs on US spirits, with 98% of imports originating from such countries. The potential damage to the US hospitality sector from these tariffs could have 'lasting, negative impacts', the coalition warned. In a separate statement from the letter, Chris Swonger, the president and CEO of the Distilled Spirits Council of the US, added: 'We need President Trump's leadership to safeguard the US distilled spirits sector by returning to permanent, tariff-free trade on distilled spirits between the US and EU. 'Doing so will help secure economic vitality during one of the most challenging times for the hospitality industry and set a benchmark for all other countries as trade negotiations with the US continue.' "Tariffs risk $2bn lost sales, say US alcohol industry groups " was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
07-08-2025
- Business
- Business Insider
Major US alcohol groups are begging Trump to slash tariffs before the holidays to keep them from losing $2 billion in sales
As the holiday season looms, US liquor groups are begging Trump to kill the tariffs they say could ruin their most lucrative stretch of the year. A group of 57 associations and guilds called the Toasts not Tariffs Coalition, said in a Wednesday letter to the White House that tariffs could result in a $2 billion sales loss in the holidays. "We reiterate our urgent request that the U.S. and EU come to an agreement to secure fair and reciprocal trade on spirits and wine," the group wrote in the letter. "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," it added. The letter comes as Trump's new tariffs went into effect at midnight on Thursday, with the European Union being slammed with a 15% tariff rate on most goods. However, the EU said on Tuesday said it would pause retaliatory tariffs for six months. Other countries, such as Switzerland and India, were hit much harder, with tariff rates of 39% and 50%, respectively. India's tariffs are set to go into effect later in August. In March, Trump also threatened to impose a 200% tariff on wine and other alcohol from the EU. The coalition said it estimated that a 15% tariff on EU wine and spirits could result in more than 25,000 American job losses and nearly $2 billion in lost sales. Per data from the US Distilled Spirits Council, the US exported $2.4 billion worth of spirits in 2024. Groups in the Toasts not Tariffs coalition represent US liquor heavyweights like Beam Suntory, the parent of Jim Beam, and Jack Daniel's owner Brown-Forman. The coalition also includes non-liquor bodies like the National Retail Federation and the National Restaurant Association. The Wednesday letter was the group's second appeal to the White House. It sent a similar letter in January, urging Trump to exclude wine and spirits from his coming tariffs and convince the US's trading partners not to apply retaliatory tariffs on their products. Kentucky's bourbon makers also appealed to the White House to ease up on tariffs after Canada's boycott of US alcohol in March. The Kentucky Distillers' Association said in a March statement on X that retaliatory tariffs would have " far-reaching consequences across Kentucky, home to 95% of the world's bourbon."
