EU imposes tariffs on US food and drinks in response to steel, aluminum dispute
EU – The European Union has announced new tariffs on US food and drink imports in retaliation to Washington’s decision to impose tariffs on steel and aluminum shipments.
The European Commission stated that it would introduce levies on €26 billion (US$28.31 billion) worth of US goods starting in April, escalating trade tensions between the two economic powers.
The move includes the re-imposition of previously suspended tariffs on products such as bourbon whiskey and additional duties on other spirits, makeup, and essential oils.
The Distilled Spirits Council of the United States (DISCUS) expressed disappointment over the EU’s decision, while Pan-European trade body SpiritsEurope voiced serious concerns about the impact on the spirits sector.
Brussels will roll out the tariffs in two phases, beginning April 1, with full implementation by April 13.
European Commission President Ursula von der Leyen defended the countermeasures, calling the US tariffs an “unjustified trade restriction.”
“The European Union must act to protect consumers and businesses. The countermeasures we take today are strong but proportionate,” von der Leyen stated.
She emphasized that the EU was matching the economic scope of the US tariffs, which amount to US$28 billion, by introducing €26 billion (US$28.31 billion) in countermeasures.
Concerns over retaliation and industry impact
European spirits manufacturers are now worried about possible US retaliation, according to Ulrich Adam, director general of SpiritsEurope. The group represents major US and European producers, including Diageo and Brown-Forman, the maker of Jack Daniel’s.
According to the Distilled Spirits Council of the United States, American whiskey exports to Europe reached US$699 million in 2024. The organization highlighted that a previous round of tariffs on bourbon in 2018 resulted in a 20% decline in exports.
Meanwhile, European spirits exports to the US were valued at €2.9 billion (US$3.15 billion) in 2024, making the US a key market for European distillers.
A European spirits producer executive, speaking to Reuters, criticized the EU’s decision, stating, “We’re being thrown, by our own government, under the bus.”
France, Spain, and Italy had requested the exclusion of wine and spirits from the list of targeted products, but the European Commission declined the request.
Spain’s Economy Ministry said it aimed to balance the interests of all affected sectors, while a French government source acknowledged that removing bourbon from the tariff list would have delayed the EU’s response.
SpiritsEurope warned that many European distillers produce US spirits, meaning the tariffs could directly impact European businesses. Additionally, US spirits companies have significant investments in European supply chains, putting jobs at risk across the industry.
Brown-Forman CEO Lawson Whiting admitted that while the company had taken steps to prepare, the situation remains difficult.
“We’ve done some things to try to get us prepared, but it’s a tough spot,” Whiting said at the UBS Consumer and Retail Conference.
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