The alcohol industry hopes to be exempt from the tariffs agreed upon in the US-EU trade deal, which was announced on Sunday (27 July). 

The trade deal saw the EU and US agree on a tariff of 15% for all EU goods entering the US, half of the 30% import tax rate that president Donald Trump had previously threatened. Meanwhile, the US will pay no tariffs on American exports to EU countries. 

When it comes to alcohol, however, the industry has been pushing for a zero-for-zero tariff agreement, led by France and the Netherlands, which are said to be seeking immunity for their respective wine and beer industries. 

Today (28 July), the French trade minister Laurent Saint-Martin said he expects the spirits sector to also be exempted from US tariffs, in what he called an otherwise “unbalanced” deal. 

President of the European Commission, Ursula von der Leyen, has likewise said that she would like to secure a zero-for-zero agreement on alcohol, which she hopes will be “sorted out” in the coming days. 

In the US, Distilled Spirits Council president and CEO Chris Swonger remains positive. 

Swonger said: “We are optimistic that in the days ahead this positive meeting and agreement will lead to a return to zero-for-zero tariffs for US and EU spirits products.” 

Nonetheless, some alcoholic drinks companies are preparing for a worst-case scenario. 

The brewer Heineken, for example, which exports its lager to the US from Europe and Mexico, said it was weighing up all options to deal with growing tariff challenges, including a shift in where the beers are produced. 

CEO Dolf van den Brink said the trade deal may force them to reconsider some elements of the business. 

Van den Brink said: “We look at all options from… continuing with our current setup, a more hybrid version, or otherwise. If and when we deem them financially to be more attractive in the mid to long-term, we would for sure explore them.”