Online Reporter
American distillers have been rushing to prepare for the possibility of steep tariffs in the European Union as the looming deadline for a 50 percent tax on American whiskey becomes more of a reality.
To cope, some are ferrying as much product as possible to the EU — one of the industry’s biggest export markets — before the April 1 deadline.
Koval, a Chicago distillery founded in 2008, is ramping up shipments to reassure distributors, keep prices stable and secure shelf space against competitors, said co-founder Sonat Birnecker Hart.
“We’ve been working with our distributors abroad to provide them with a level of understanding that we do want to remain in the market. We’ve also sent more products over to try and weather the storm,” she said.
The whiskey tariff is part of the EU’s retaliatory response to ongoing US trade restrictions on steel and aluminum that started during President Trump’s first term in office.
On Thursday morning, Trump threatened to impose a 200 percent tariff on European wine, Champagne, and other alcoholic beverages unless the EU lifts its 50 percent tariff on US whiskey, he said in a social media post.
“This will be great for the Wine and Champagne businesses in the US,” he added. Though Champagne, by definition, can only come from France’s Champagne region.
American whiskey was previously subject to a 25 percent tariff, which the EU imposed in 2018 but suspended in late 2021 as part of trade negotiations under President Biden. Since then, American whiskey has been tariff-free in the EU.
However, the 50 percent tariff is set to take effect on April 1 unless the US and EU reach a last-minute agreement before the end of the month.
US Commerce Secretary Howard Lutnick said he plans to speak with EU officials later Thursday, expressing hope that “they’ll realise they should take these things down.” — Bloomberg
