During the ongoing economic upheaval caused by Donald Trump’s trade policies, a glimmer of relief emerges for drink manufacturers: the European Union (EU) has withdrawn plans to levy retaliatory tariffs on American whiskey products, notably including bourbon.
This decision comes after intense lobbying from EU countries with significant alcohol production, such as Ireland (known for its whiskey) and the wine giants Italy and France. These nations were alarmed by the potential threat to their own alcohol industries amid a wider global trade conflict.
The EU’s updated stance came to light following a leaked draft list of US products that would face retaliatory tariffs, reduced from €26 billion to €21 billion after negotiations with both the EU’s 27 member states and various industry bodies. Although the final list to be voted on by EU members includes a broad spectrum of products – ranging from almonds to yachts, diamonds, dental floss, soybeans, and steel parts – it notably excludes bourbon and wine.
France, Italy, and Ireland had strongly objected to the initial inclusion of bourbon and wine on the list, echoing concerns about the economic impact such tariffs would have on their respective alcohol sectors. This opposition was underscored by Trump’s threats of countermeasures against European wines and champagnes, which would have come at a steep cost for exporters. One champagne producer even feared that a 200% tariff would effectively end exports to the United States.
French cognac and brandy producers have faced difficulties due to Chinese tariffs imposed in response to the EU’s decision to tax electric vehicles from China. Meanwhile, bourbon had been considered a potential target given its history in previous trade conflicts, where it , along with other US products, had been targeted by the EU in response to steel and aluminum tariffs imposed by the US.
The potential levying of tariffs on spirits in trade disputes has raised significant concerns and perplexity within the alcohol industry. Prior to the imposition of current tariffs, transatlantic trade of spirits between the US and EU had flourished, growing by 450% since the almost complete elimination of tariffs on spirits in 1997, reaching a benchmark of €6.7 billion in 2018.
US rules require bourbon to be aged in new oak barrels, which are often resold and subsequently used to age whiskeys in Ireland and across the EU before being exported back to the US. These barrels have become a lucrative side venture for American bourbon makers.
Many industry insiders, like Paul Nash, the founder of Wild Atlantic Whiskey, worry about the impact of ongoing tariffs, which could affect not just the products’ prices but also production costs due to the import-export dynamics of materials like bourbon oak casks.
The EU, while not making the list public yet, insists it is striving to minimize damage to the EU market and use these measures primarily as a bargaining chip in trade negotiations, expressing a preference to avoid tariffs altogether.
With respect to Northern Irish whiskey, there are additional complications as Brexit has tied it to EU trade rules, and whiskey makers source their barley from the Irish Republic, adding another layer of complication to the regional whiskey production.
Source: https://www.theguardian.com/business/2025/apr/08/eu-drops-plans-to-hit-american-bourbon-with-retaliatory-tariffs
