The EU has reportedly removed bourbon from their raft of retaliatory tariffs which are due to be introduced in response to President Trump’s levy on goods entering the US, bringing some much needed relief to producers on both sides of the Atlantic.
It was initially proposed that the EU introduce a 50% tariff on all bourbon entering the bloc, with other American spirits also being considered for additional taxation. In response, Trump threatened to hit all EU-produced drinks imported to the States with a 200% tariff.
While trump seems to have rowed back from this stance, drinks makers throughout Europe nevertheless urged the EU to reconsider their levy. Whiskey makers from Ireland were particularly vocal in lobbying the European Commission, and they were joined by wine makers in Italy and France.
Firstly, introducing tariffs on American spirits still leaves open the possibility of countermeasures from the US. Trade with America is vital for the Irish drinks industry. Bord Bia - the Irish food and drinks board - estimated that 5.7 million cases of Irish whiskey were shipped to the US in 2023, and whiskey exports to the States were believed to be worth over €420 million in 2024.
Additionally, a tariff driven trade-war between the US and the EU could threaten the ability of European whisky producers to import casks from America. Ex-bourbon barrels are commonly used to mature whisky in both the UK and Europe; in fact, the majority of the spirit maturing in warehouses across Europe is likely to be held in American oak casks.
In backing his country’s whisky industry, Irish foreign minister Simon Harris questioned “the strategic relevance” of targeting Bourbon.
The news has been welcomed Stateside as well. The Distilled Spirits Council of the United States (Discus) has long advocated tariff free trade between the EU and the US. The group point to how American whiskey exports to the EU fell from US$552 million in 2018 to US$440 million in 2021 - an era during which the EU had a 25% tariff on US spirits.
However, when the tariffs were lifted American whiskey sales to Europe soared, reaching a value of around US$699 million in 2024.
Discus CEO Chris Swonger issued a statement saying how “the US spirits sector has been the model of success for fair and reciprocal trade for decades,” acknowledging how both sides benefit from train free trade.
A spokesperson for the European Commission declined to comment on bourbon specifically, but stated that they were seeking to resolve the conflict between the two sides. They ultimately hinted at a tariff-free future, saying “we don’t want tariffs. We want to avoid them.”
So it seems as if producers and consumers in both Europe and America can take some solace in the fact that they aren’t going to be hit with yet more price rises.
Of course, it would be naive to get to comfortable with this state of affairs. The situation with Trump taking on the world with tariffs and counter-tariffs has been rumbling on for months - years if you take his previous Presidency into consideration.
Unfortunately the global spirits industry has been struggling with a multitude of factors recently and this apparent trade war - a matter of what will be tariffed, by whom, and to what extent - has only added to that uncertainty.
