Alcohol Industry Battles U.S. Tariff Threat
A 15% U.S. tariff on EU goods threatens nearly $2 billion in alcohol sales and 25,000 U.S. jobs. Industry groups urge President Trump to negotiate a better trade deal, warning of price increases and economic damage ahead of the holiday season. European producers like Diageo and Pernod Ricard are key stakeholders.
The U.S. government's recent imposition of a 15% import tariff on European Union goods could slash the value of alcohol sales by nearly $2 billion and jeopardize approximately 25,000 American jobs. This stark warning comes from a coalition of 57 alcohol industry groups urging President Donald Trump to enlist a more favorable trade agreement.
Signed by major European producers, including giants like Diageo and Pernod Ricard, alongside U.S. whisky and wine producers, the appeal highlights the lack of exemption for wines and spirits, which had been fiercely advocated. The coalition, 'Toasts Not Tariffs,' warns that the current tariff setup fails to provide a fair and reciprocal trade environment.
With the pivotal holiday season looming, the letter asserts that the tariff could significantly inflate menu prices and hinder American business operations, exacerbating existing financial challenges. The U.S., a leading market for EU wine and spirits, faces potential retaliation from Europe, complicating an already tense trade landscape.
(With inputs from agencies.)
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