In a letter addressed to Donald Trump, the Toasts Not Tariffs Coalition has urged the president to “secure fair and reciprocal tariff-free trade for U.S. and EU spirits and wines as soon as possible”.
The 57 signatories included key US trade organisations including the Distilled Spirits Council of the United States, WineAmerica and American Distilling Institute.
The letter read: “Our sectors stand as a model of mutually beneficial trade, and the livelihoods of those working within it depend heavily on international trade… Nearly 86% of U.S. spirits exports go to countries that have eliminated tariffs on all U.S. spirits, and approximately 98% of spirits imports originate from countries that have eliminated tariffs on US spirits.
“The damage to the U.S. hospitality sector resulting from tariffs on wines and spirits will have lasting, negative impacts… We estimate that a 15% tariff on EU wine and spirits could result in more than 25,000 American job losses and nearly $2 billion in lost sales.
The EU and US agreed a trade deal at the end of July but neglected to outline specific details regarding wine and spirits.
A blanket 15% tariff on EU goods, including wine and spirits, is set to be imposed tomorrow (8 August).
Speaking to CNBC this week, the president threatened to increase the blanket tariff on EU imports to 35%, if the EU failed to invest $600 billion into the US as per an agreement in the trade deal signed in July.
