EU has decided to spare American bourbon from its retaliatory tariff smackdown. Turns out, the Europeans love their whiskey (and wine) too much to let it get caught in the crossfire of this economic bar brawl.
After some serious arm-twisting from the EU’s resident liquor lords—Ireland with its whiskey wizardry, and Italy and France with their wine-soaked swagger—bourbon and vino have been yanked off the EU’s hit list of US goods.
This leaked draft, first spilled by Reuters, was originally set to slap tariffs on €26 billion worth of American stuff, but after a bit of haggling with the EU’s 27 member states and a chorus of industry sob stories, it’s down to €21 billion.
The new lineup of tariff targets is a bizarre grocery list—almonds, yachts, diamonds, dental floss, soya beans, and steel parts—but bourbon and wine? They’ve dodged the bullet.
Cue the sighs of relief from France, Italy, and Ireland, who threw a fit when Trump flexed his X fingers on March 13, threatening a 200% tariff on “All wines, champagnes, & alcoholic products coming out of France and other E.U. represented countries.”
Ireland’s foreign minister, Simon Harris, basically said, “Why poke the bourbon bear?” while France’s PM, François Bayrou, called it a “whoopsie-doodle.” France, usually all about throwing punches in trade spats, got cold feet when a champagne maker cried, “200% tariffs? That’s curtains for our US market!”
This isn’t bourbon’s first rodeo, either. Back in Trump’s first term, when he whacked steel and aluminum with tariffs, EU retaliated by targeting American icons like Harley-Davidsons, blue jeans, and, yep, bourbon.
“We can play dumb too,” quipped then-EC president Jean-Claude Juncker, proving that trade wars are just playground fights with fancier toys. Meanwhile, French cognac and brandy makers are already nursing a hangover from Chinese tariffs—payback for the EU’s electric vehicle duties—so they weren’t exactly thrilled about another round of tariff tag.
The drinks industry is scratching its head over why everyone keeps picking on their bottles. Before all this tariff nonsense kicked off, US-EU spirits trade was living the dream—up 450% since 1997, hitting €6.7 billion by 2018, says spiritsEurope.
Irish whiskey, Cognac, and Polish vodka have VIP status in the US, while only American stuff can claim the bourbon crown in the EU. Ireland’s whiskey boom—€420-450 million in exports to the US in 2024, led by big shots like Jameson and a swarm of craft distilleries—had folks sweating that Trump’s revenge would turn their casks into kindling.
Speaking of casks, this could’ve gotten messy. Bourbon’s virgin oak barrels, chucked after a couple years in the US, get a second life aging Irish whiskey before heading back stateside. A trade war could’ve jacked up costs and left everyone with a bad taste.
“This sucks for everyone,” moaned Paul Nash of Wild Atlantic Whiskey, who’s already dodging 10-20% tariffs on UK and EU exports. The US slapped a 10% tariff on UK goods April 5, with a 20% EU rate kicking in April 9. Northern Ireland’s whiskey makers are extra grumpy—Brexit’s tangled them in EU rules, and they get their barley from south of the border.
The EU’s keeping mum on bourbon until the final list drops Wednesday. A spokesperson dodged the question, saying, “We’re just trying to hurt ourselves the least while twisting the US’s arm the most. Tariffs? Ugh, we’d rather not.”
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