Tariff Tensions: How US Tariffs Are Shaking Up the Global Spirits Industry

U.S. tariffs on various spirits and beers, announced by President Trump, will increase costs for American drinkers, cause brand shortages, and threaten jobs in the US and Europe. While some tariffs like the 200% on European alcohol haven't materialized, existing taxes still risk damaging economic ties and industry profits.

Amid escalating trade tensions, President Trump's new round of tariffs is set to shake up the global spirits landscape, with American consumers expected to face higher prices for cocktails and international beers. Key industry players have sounded the alarm over potential job losses and brand shortages on both sides of the Atlantic.

The tariffs, targeting popular drinks like Italian Campari-based negronis and Irish Guinness, have impacted spirits and beer imports with a 25% levy, adding strain to labels such as Mexican Corona and Dutch Heineken. The move has managed to keep industry stocks relatively flat while sparking concern among European producers reliant on U.S. sales.

With the spirits industry grappling with the challenges posed by these new barriers, stakeholders warn of severe disruptions, particularly in regions like Cognac, France. The U.S. tariffs, which have hit imports including bourbon whiskey, risk inciting retaliatory actions, threatening American jobs connected to the sector.

(With inputs from agencies.)