In the midst of the economic turbulence caused by Donald Trump’s trade war, a small silver lining has emerged for the alcohol industry: the European Union has decided not to impose retaliatory tariffs on American bourbon.
Bourbon and other U.S. whiskeys have been spared from the EU’s countermeasures, largely thanks to lobbying efforts from key European drink-producing countries such as Ireland, France, and Italy. These nations, which have significant alcohol industries of their own, feared that a global trade war could cause severe damage to their markets.
The EU had initially planned to impose tariffs on a range of U.S. goods in response to Trump’s tariffs on steel and aluminum, announced the previous month. According to a leaked draft list first reported by Reuters, bourbon and wine were set to be included in those retaliatory measures. However, after considerable lobbying and discussions with industry stakeholders, these products were removed from the final list of targets.
On Wednesday, EU member states are expected to vote on the revised list, which now targets €21 billion worth of U.S. goods, down from the €26 billion originally planned. The list includes a variety of products, ranging from almonds and yachts to soybeans and steel parts, all set to face 25% tariffs. However, bourbon and wine have been excluded.
The inclusion of alcohol products, particularly bourbon, sparked strong opposition from several European governments. Irish officials, including Foreign Minister Simon Harris, questioned the strategic relevance of targeting bourbon, while French Prime Minister François Bayrou called it a “misstep.” In response to the threat to bourbon, President Trump had warned on social media that he might impose a 200% tariff on wine, champagne, and other alcoholic products from France and other EU countries. This prompted further backlash from the affected countries.
The French government, which had been advocating for a robust response to U.S. tariffs, was especially concerned about the impact on its drink industry. For example, a French champagne producer warned that a 200% tariff would destroy their access to the U.S. market. Additionally, French cognac and brandy makers had already been facing challenges due to tariffs imposed by China in retaliation for the EU’s anti-dumping duties on Chinese electric vehicles.
Bourbon had become a likely target due to its previous inclusion in the EU’s countermeasures. When Trump imposed tariffs on steel and aluminum during his first term, the EU responded by targeting iconic U.S. products such as Harley-Davidson motorcycles, blue jeans, and bourbon. European Commission President Jean-Claude Juncker at the time described the countermeasures as a necessity, stating, “We can also do stupid.”
The targeting of alcoholic beverages in trade wars has raised concerns within the industry. Since the removal of tariffs on spirits between the U.S. and EU in 1997, transatlantic trade in alcohol grew by 450%, reaching €6.7 billion in 2018. This increase has been a boon for both American and European alcohol producers.
For example, Irish whiskey is one of the most popular imports to the U.S., with exports valued between €420 million and €450 million in 2024. The sector, which includes well-known brands like Jameson, has seen significant growth, with a surge in craft distilleries across Ireland. This expansion has benefited from U.S. consumers’ increasing appetite for premium whiskey, with some bottles fetching as much as $5,000. However, a trade war could significantly raise production costs, as bourbon barrels are used to age whiskey in Ireland and other EU countries.
Paul Nash, the founder of Wild Atlantic Whiskey in County Tyrone, voiced concerns about the ongoing tariffs, noting that the 10% tariff on UK goods and the 20% tariff on EU goods could harm both the Irish and European whiskey industries. Northern Ireland’s whiskey industry is also impacted by Brexit-related rules, which complicate trade with the EU.
A spokesperson for the European Commission declined to comment specifically on bourbon, noting that the list had not yet been made public. They reiterated that the EU’s goal is to minimize the damage caused by these tariffs while leveraging the negotiations for the best possible outcome, adding, “We don’t want tariffs. We want to avoid them.”
