EU tariffs on alcohol could cost US $2B and 25,000 jobs

A coalition of 57 alcohol industry groups has warned US President Donald Trump in a letter that a 15% tariff on EU goods could slash US alcohol sales by nearly $2 billion and jeopardise 25,000 American jobs, Report informs via Invezz.

The letter garnered signatures from key players in the European beverage industry, including major producers like Diageo and Pernod Ricard, according to a Reuters report.

It also received support from US whiskey and wine producers, alongside glass suppliers, retailers, and restaurants.

In a significant development last month, Washington and Brussels successfully concluded negotiations to implement a 15% import tariff on the majority of goods originating from the European Union.

This agreement represents a crucial diplomatic achievement, as it effectively halved the initially threatened tariff rate, thereby averting a potentially far more extensive and damaging trade war between the two economic powerhouses.

Despite the wine and spirits industries’ advocacy for an exemption, the negotiations did not yield the desired result.