Just Announced: EU to Impose 25% Tariffs on US Rum, Brandy, Vodka & Vermouth

Today the European Commission announced new 25% tariffs on US rum, brandy, vodka and vermouth slated to go into effect tomorrow, November 10^th. The tariffs are allowed under the WTO ruling against Boeing, allowing retaliation on approximately $4 billion worth of goods. There is a provision exempting products already on the water, under Article 3, but requiring  that “the importers prove that they have been exported from the United States to the EU prior to the date on which an additional duty is applied with respect to that product.”   

We were hoping for a delay in the tariffs, but the EU decided to go forward. As most of you are aware, in October 2019 the US imposed tariffs on Scotch and Irish whiskey, liqueurs and cordials from Germany, Ireland, Italy, Spain and the UK and select wines from Germany, France, Spain and the UK. Since then this has resulted in a 34% decline in Scotch whiskey exports, a 28% decline in exports of liqueurs and cordials, and a 54% decline in wine exports from the targeted EU countries. European Commission Executive Vice-President and Commissioner for Trade, Valdis Dombrovskis stated in a press statement, “We have made clear all along that we want to settle this long-running issue. Regrettably, due to lack of progress with the U.S., we had no other choice but to impose these countermeasures. The EU is consequently exercising its legal rights under the WTO's recent decision.”

WSSA, DISCUS, and 18 other trade association members of a coalition representing the wine and spirits industry have fought against these tariffs from the beginning and will continue to do so. The coalition has stated, “The application of excessive and unwarranted tariffs has to end. Hospitality businesses and our consumers, as well as producers, wholesalers and importers of distilled spirits, wine, and beer are being slammed from both sides of the Atlantic in an aircraft dispute wholly unrelated to the drinks business.”

It is still uncertain how the US plans to respond to these new EU-imposed tariffs, and we will keep you informed of any developments to this situation. Click here for a full list of the published tariffs and the coalition letter signed by the 20 trade associations (including WSSA) as part of the wine and spirits industry coalition.