You may have noticed that the price of wine, whiskey and other alcohol products from Europe have been higher lately. This is the result of a 25% tariff imposed by the Trump administration beginning in 2019, based on a dispute with the European Union over government subsidies to the aircraft industry. U.S. importers of alcoholic beverages, along with distributors, retailers, restaurants and consumers, all paid more as a result.

On June 15, 2021, the United States and European Union agreed to a framework to end the trade dispute. There will be no tariffs for the next five years, while the parties work on a comprehensive settlement. Our clients in the beverage and hospitality industries have raised their glasses in celebration, and so should consumers.

Trade Disputes Over Metals and Aircraft Led to Tariffs

In March 2018, citing national security concerns, former President Donald Trump imposed a tariff on imports of steel and aluminum from the EU. In response, the EU imposed a 25% tariff on whiskey imported from the United States, which caused a 37% reduction in exports of American whiskey to the EU, its largest market.