The United States has stuck firm to a 15% tariff on European Union spirits imports, excluding wine and distilled spirits from broader trade exemptions. The move could cost the American hospitality industry over $1 billion in retail sales and 12,000 jobs, according to the Distilled Spirits Council of the United States.
A joint statement between the U.S. and the EU was released today, August 21st, 2025, as part of a preliminary trade framework between President Trump and European Commission President Ursula von der Leyen.
While the agreement lowered tariffs on most EU exports, including cars, semiconductors, and pharmaceuticals to 15%, spirits and wine received no exemptions.
Distilled Spirits Council of the United States Warns of Economic Impact
Industry leaders expressed disappointment with the decision to exclude spirits from tariff relief. The Distilled Spirits Council of the United States (DISCUS) estimates the 15% levy could devastate an already struggling hospitality sector facing slowing spirits sales and rising operational costs.
“While we greatly appreciate President Trump’s efforts to protect American manufacturing jobs, we are disappointed that this joint statement did not include permanent tariff-free trade for distilled spirits on both sides of the Atlantic,” said Chris Swonger, President and CEO of DISCUS.
“We commend the administration for safeguarding U.S. spirits from tariffs in the short term but without a permanent return to zero-for-zero tariffs on spirits, American distillers do not have the certainty to plan for future export and job growth without the fear of retaliatory tariffs returning,” Swonger continued.
Tariffs on Spirits Threaten Recent Export Gains
On August 5th, the EU announced a six-month suspension of retaliatory tariffs on U.S. imports, including distilled spirits, wine, and used barrels, effective until February 5, 2026. This temporary reprieve offers some relief for American exporters who saw dramatic losses during previous tariff disputes.
“This is an unsteady time for the U.S. hospitality industry with sales of spirits facing a slowdown and rising food and labor costs. These new higher tariffs on EU spirits products will further compound the challenges facing restaurants and bars nationwide,” Swonger said.
“We are determined to continue engaging with the Trump administration to urge for additional negotiations with the EU to get our special spirits industry back to zero-for-zero tariffs, which will benefit consumers and protect American jobs across the agriculture, manufacturing, and hospitality industries,” he added.
DISCUS continues advocating for permanent tariff-free trade to protect American jobs and provide certainty for future industry growth.
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