The US wine and spirits sector could lose around US$2bn in sales and up to 25,000 jobs if retaliatory tariffs on European imports are not lifted, according to a coalition of industry bodies.
In a letter sent to President Donald Trump yesterday (6 August), the Toasts Not Tariffs Coalition – comprising 57 associations across the alcohol and hospitality supply chain – urged the administration to secure a reciprocal, tariff-free trade agreement with the EU ahead of the holiday trading period. The coalition said restoring tariff-free access would represent “a clear and significant win” for American businesses, workers and consumers.
The letter warned that the continuation of tariffs, including a 15% duty on EU wine and spirits, is creating significant market uncertainty and harming long-term planning. It added that wine and spirits are tied to specific geographies, making it impossible to shift production to avoid trade barriers.
The coalition represents a value chain employing 3.5m people across farming, packaging, logistics and hospitality, generating US$476bn in annual economic activity. Its members include groups such as the Distilled Spirits Council of the US (Discus), National Restaurant Association and the American Craft Spirits Association.
US spirits and wine producers rely heavily on export markets: nearly 86% of spirits exports go to countries with no tariffs, while almost all imports come from countries that have eliminated tariffs on US products, the coalition said.
The 15% tariff on wider EU goods, including wine and spirits, is scheduled to take effect tomorrow (8 August).
Earlier this month, Discus CEO Chris Swonger slammed the absence of a resolution on alcohol tariffs in the latest trade agreement framework between the US and the EU.
