EU & USA: Brewers, distillers voice concern over lack of tariff relief in EU-US joint statement

Trade associations The Brewers of Europe and the Distilled Spirits Council of the US (Discus) have voiced concern following the EU-US joint statement last week, which did not secure tariff-free trade terms for their respective industries, Global Drinks Intel reported on August 26.

Beer exports from the European Union to the US remain subject to a 15% tariff, with canned products facing an additional 50% aluminium derivatives duty. The Brewers of Europe said the “double blow” is weighing heavily on brewers, farmers and supply chain partners, adding that a zero-for-zero tariff deal would stimulate investment and increase consumer choice.

“Beer has long been a cornerstone of EU-US trade, built on a unique ecosystem of collaboration,” said secretary-general Julia Leferman. “Restoring fair and reciprocal trade terms would allow the transatlantic beer market to flourish once more – to the benefit of farmers, brewers, distributors, hospitality workers and consumers in both Europe and the US.”

In a separate statement, Discus CEO Chris Swonger welcomed US efforts to protect domestic manufacturing jobs but warned that the absence of permanent tariff-free trade leaves the country’s distillers exposed to the risk of retaliatory duties returning.

“We commend the administration for safeguarding US spirits from tariffs in the short term, but without a permanent return to zero-for-zero tariffs on spirits, American distillers do not have the certainty to plan for future export and job growth,” Swonger said. “These new, higher tariffs on EU spirits products will further compound the challenges facing restaurants and bars nationwide.”

Both organisations said they remain committed to working with policymakers to secure a durable zero-for-zero tariff agreement covering beer and spirits.

Earlier this month, Gallup’s recent report showing alcohol consumption at an 86-year low in the US prompted a raft of reactions from within the country’s alcohol industry, including the CEO of The Brewers Association in the US.