Removal of EU, UK Tariffs Helping Exports of US Spirits, but Challenges Remain
U.S. spirits exports are “gradually” rebounding after the EU and U.K. recently agreed to lift retaliatory tariffs against certain U.S. liquors, the Distilled Spirits Council of the U.S. said last week. The U.S. exports, including whiskey, increased by about 20% from January to July compared with the same period last year, the council said. The EU suspended its 25% tariff on U.S. spirits for two years from Jan. 1, 2022, while the U.K. lifted its 25% tariff in June.
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The numbers are “an encouraging sign that consumers in these key export markets are beginning to return to purchasing American spirits,” said Rob Maron, the council’s vice president of international trade. The group is “working to return to permanent duty-free trade in spirits.”
Still, the council noted that many U.S. craft distillers are struggling to “regain their footing” in foreign markets due to the “chilling effect from the tariffs, supply chain issues, increased shipping costs and inflation.” Herman Mihalich, founder of Dad’s Hat Rye Whiskey in Bristol, Pennsylvania, said it's “great the tariffs are lifted, but it’s going to take a bit more time for us to get the momentum back,” adding that “returning to these important international markets has been challenging.”