The Daily Star Ireland
The potential introduction of US tariffs on European alcoholic beverages has raised significant concerns within Ireland’s spirits industry. The Irish Whiskey Association (IWA) has expressed deep apprehension over the impact such tariffs could have, particularly in response to the European Union’s proposed levies on US whiskey.
US President Donald Trump recently announced a 200% tariff on wine, champagne, and other alcoholic products from France and the EU, marking another escalation in the ongoing trade dispute. The European Union, in turn, unveiled countermeasures against US tariffs on steel and aluminum, affecting €26 billion worth of American goods.
Irish whiskey exports, valued at over $1 billion annually, could be among the products affected by the tariff increase. IWA Director Eoin Ó Catháin emphasized that trade restrictions benefit no one, noting that even the Distilled Spirits Council of the US opposes such measures.
He highlighted the success of the tariff-free trade agreement between Ireland, the EU, and the US since 1997, urging for its continuation. With no immediate tariffs implemented yet, he sees a limited window for diplomatic engagement. He also stressed the importance of securing support from the Irish government to prevent any adverse effects on the whiskey industry.
Call for Diplomatic Solutions
Taoiseach Micheál Martin has urged dialogue between the US administration and the European Commission as the best approach to resolving trade tensions. Speaking in Washington, he confirmed that discussions will take place at the upcoming European Council meeting and within the European Commission to determine how the EU should respond.
He acknowledged that the EU’s approach in imposing tariffs on US bourbon whiskey as a response to previous steel and aluminum tariffs may need reevaluation. Martin suggested a strategic review of reciprocal tariffs and emphasized the necessity of a refined, updated approach to negotiations.
He also highlighted the broader economic implications of prolonged uncertainty, noting that it complicates business operations and investment decisions. While hoping for a resolution, he acknowledged the challenges businesses will face in adapting to potential changes, pledging that the Irish government will continue working with the industry to mitigate risks.
