European Whiskey Tariff Threatens U.S. Industry, Says Distilled Spirits Council CEO

European Whiskey Tariff Concerns

The CEO of the Distilled Spirits Council of the United States on Wednesday warned that a European whiskey tariff would be "very, very devastating." "We've just gotten the news early, early this morning, that the European Union (EU) is poised to put a 50 percent tariff on American whiskey. That will be very, very devastating," Chris Swonger told NewsNation’s Nichole Berlie.

Trade Tensions Escalate

The U.S. has recently been embroiled in trade battles with multiple countries across the globe, including Canada, Mexico, and several European nations. In response to 25 percent tariffs from President Trump that took effect Wednesday, the EU swiftly retaliated with a two-step approach.

• Swonger emphasized the U.S. industry’s understanding of the need for American manufacturing and reducing the trade deficit.
• The European Trading bloc, comprising 27 nations, plans to suspend existing countermeasures targeted at the U.S. from 2018 and 2020.
• A new package of countermeasures affecting $28 billion in imports from the U.S. will activate later this month.

The European Commission’s president, Ursula von der Leyen, expressed regret over the tariffs imposed on steel and aluminum by President Trump. She stated, "Tariffs are taxes. They are bad for business, and even worse for consumers." Von der Leyen added that these tariffs disrupt supply chains, create economic uncertainty, and threaten jobs.

Immediate Impact and Future Outlook

Von der Leyen emphasized that the European Union must take action to protect consumers and businesses amid rising tensions. She concluded, "The countermeasures we take today are strong but proportionate."