The United States’ tariff on EU goods could lower the value of alcohol sales by $2 billion, a group of 57 alcohol industry players said in a letter to the President on Tuesday ( 5 July). 

The letter, addressed to Trump from the Toasts Not Tariffs Coalition, warned that 25,000 US jobs were also potentially at risk due to the 15% tariff on products from the EU. 

Signatories included Diageo and Pernod Ricard, a series of US whiskey and wine producers, as well as glass suppliers, retailers and restaurants. 

The document expressed dissatisfaction that there had not been a tax exemption for wine and spirits, something that had previously been discussed. 

Looking forward to the festive season, the letter read: “Mr President, we need toasts, not tariffs, as we head into the most important season for our industry. As part of your America First Trade Policy, we seek your leadership to secure fair and reciprocal tariff-free trade for US and EU spirits and wines as soon as possible.” 

It continued that tariffs would push up menu prices and damage American businesses. 

The letter added: “Our sectors stand as a model of mutually beneficial trade, and the livelihoods of those working within it depend heavily on international trade.” 

At present, the US is the largest market for many European wine and spirit makers. However, amid tariff frustrations, some producers have discussed focusing on alternative markets. 

The EU has also included US alcohol, including whiskey, on its list of potential items for tariff retaliation. 

As of Tuesday this week however ( 5 July), the EU suspended acting on the planned retaliation tariffs for six months. 

Following a meeting with Washington, EU trade spokesman Olof Gill said: “The commission has today adopted the necessary legal procedures to suspend the implementation of our EU countermeasures, which were due to kick in on August 7.” 

A senior EU official commented that the US and EU were working out the details of the trade agreement, with details to follow soon.