American whiskey producers and brand owners can enjoy the festive period a little more than before as the reinstatement of tariffs on exports to the European Union has been postponed.
The European Commission confirmed yesterday that the suspension introduced at the start of last year will not end on 31 December as originally intended. Instead, the deferral, which also included a threatened doubling of the tariff level, will remain in place until 31 March 2025, while negotiations between the EU and the US over steel and aluminium exports continue.
The EU hit American whiskey with a 25% tariff back in 2018 during a trade row that dates back to the Trump administration. The high level remained in place until January 2022, during which time exports slumped: Figures cited by Global Drinks Intel last May showed that the value of US whiskey shipments to the EU between 2018 and 2021 declined by 20% to US$440m.
For the 12 months of last year, exports to the EU were up year-on-year by 29%, totalling $566m.
This week’s announcement was “greatly appreciated” by trade association the Distilled Spirits Council of the US. “This agreement is welcome news for US distillers across the country,” said CEO Chris Swonger. “The US distilled spirits industry has worked hard to regain its footing in the EU market since the EU suspended its 25% retaliatory tariff on American whiskeys in January 2022.
“The US spirits industry has seen positive results, with American whiskey exports to the EU bouncing back to surpass pre-tariff levels.”
Elsewhere, the Kentucky Distillers’ Association, which represents around 100 bourbon companies, added: “US and EU spirits exporters had enjoyed duty-free access to each other’s markets for more than two decades. Our signature industry has worked hard to … regain footing from the last short-term suspension of tariffs.
“As Bourbon takes years of ageing to perfect, a permanent solution will bring certainty to our distillers as they look to continued growth and investments in international markets.”
How American whiskey has come back from the dead – Category Intel
