BREAKING NEWS: European Union Suspends Raise of Tariffs on U.S. Whiskey
The European Union announced this morning in a statement that they will not raise tariffs on U.S. Whiskies and other goods. The E.U. had imposed these tariffs in retaliation to the Trump Administration’s implementation of tariffs on European Steel.
The tariffs on whiskey were set to double, from 25% to 50% on June 1st, but this signals that both sides are committed to continue negotiations and find a compromise before hurting unrelated producers more.
The tariffs have had extreme economic impact on whiskey makers, with exports to the E.U. declining 37% since the implementation. The United Kingdom represents the 4th largest export market of American Whiskey, has seen exports decrease by 53% since 2018. The increased cost has had a significant impact on revenue for large producers and has made it nearly impossible for smaller companies to break into the foreign market.
While there is no guarantee that the tariff will be removed, or even not be raised, it signals a willingness for European officials and the Biden Administration to work together and come up with a long term solution. This comes off the heels of the U.S. temporarily lifting similar tariffs on Single Malts from the U.K. and Northern Ireland along with other spirits made in the E.U., over a dispute of aircraft subsidies.