‘Jobs Are At Stake’: European Union Moves Forward With 50% Retaliatory Tariffs on American Whiskey

On Wednesday, the European Union announced its intention to impose 50% tariffs on American whiskey imports. The move, which could debilitate heavy hitters like Jack Daniel's and Jim Beam alongside mom-and-pop distillers, was made in retaliation to President Donald Trump's reimposition of 25% steel and aluminum tariffs on the E.U. The first wave of tariffs, slated to take effect on April 1, will apply to goods including bourbon, motorcycles, beef, poultry and peanut butter. A second wave of tariffs tentatively scheduled for mid-April could affect a larger swath of products, including but not limited to American wine, gin, liqueurs and coridals. European Commission President Ursula von der Leyen says that officials "always remain open to negotiation" in the meantime.

"Jobs are at stake. Prices will go up. In Europe and in the United States. The European Union must act to protect consumers and business." Leyen said in a public statement. "The countermeasures we take today are strong but proportionate. As the US are applying tariffs worth 28 billion dollars, we are responding with countermeasures worth €26 billion."

It's the latest in a trade way nearly a decade in the making. In March 2018, the Trump administration imposed a 25% tariff on E.U. steel and aluminum, much the same as what it announced on Wednesday. In response, European officials slapped American whiskey imports with a 25% tariff of their own. Over the next three years, whiskey exports to the E.U. reportedly dropped from $552 million to $440 million. The downturn went both ways. According to The Herald, Scotch whisky producers lost £600 million ($778 million) from a second tariff push that lasted from October 2019 to March 2021. The industry has since reclaimed its footing slowly but surely. American whiskey exports to the E.U. have rebounded to $669 million as of 2024. Distillers now stand to lose hundreds of millions as the E.U. not only reimposes but doubles tariffs that crippled the market in the late 2010s. Chris Swonger of the Distilled Spirit Council says that the announcement couldn't have come at a worse time.

"Reimposing these debilitating tariffs at a time when the spirits industry continues to face a slowdown in U.S. marketplace will further curtail growth and negatively impact distillers and farmers in states across the country, Swonger said. "We urge the U.S. and EU governments to come to a resolution that gets our spirits industry back to zero-for-zero tariffs."

Industry giants like Diageo, Brown-Forman and LVMH have reported steep losses over the past year attributed to a multitude of market headwinds. Hurdles include inflation and a decline in liquor consumption, particularly among younger consumers. A seemingly endless cascade of tariff news has only worsened the problem. Though it's currently unclear whether America's tariff scheme against Mexico and Canada will actually come to fruition, heated barbs between the nation's leaders have already had a noticeable effect. Earlier this month, Canadian provinces including Ontario, British Columbia and Quebec removed billions of dollars worth of American alcohol from liquor store shelves across the country. If Canada's tariffs against the United States do in fact take effect, they'd cost American distillers billions more. [callout-app-promo]