The US alcohol industry is urging President Donald Trump to reduce tariffs on alcohol imports from the European Union (EU) before the holiday season, warning of a potential $2 billion loss in sales and 25,000 job cuts.
What Happened: According to a Business Insider report, major US alcohol producers have sent a letter to the White House, appealing for a reduction in tariffs. The letter, sent by an alcohol association, highlights the potential impact of the tariffs on the industry.
The Toasts not Tariffs Coalition, comprising 57 associations and guilds, has warned of a $2 billion sales loss during the holiday season. The coalition has requested a fair and reciprocal trade agreement on spirits and wine between the US and the EU.
The group represents major US liquor companies like Beam Suntory and Brown-Forman, as well as non-liquor bodies like the National Retail Federation and the National Restaurant Association.
Why It Matters: The letter was sent as Trump’s new tariffs on the EU came into effect, with a 15% tariff rate on most goods. The EU has announced a six-month pause on retaliatory tariffs, while other countries like Switzerland and India face higher tariff rates.
The industry is also witnessing changes in consumer preferences, with companies like CIMG Inc. launching Maotai-style liquor and offering alternatives to traditional alcohol products.
The ongoing tariff dispute between the US and the EU has also been a concern for the industry
Read Next:
Photo courtesy: Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
