Disappointment with the new US-EU trade agreement is a transatlantic affair, with the Distilled Spirits Council of the United States joining its European counterparts in criticizing the deal’s shortcomings. The council expressed its frustration that the agreement did not establish permanent tariff-free trade for spirits, a key goal for the industry on both sides of the Atlantic.
Chris Swonger, the council’s president and CEO, warned of severe economic consequences for the US. He projected that the 15% tariff on EU spirit imports could result in retail losses exceeding $1 billion and cost the American economy as many as 12,000 jobs. “We are disappointed that this joint statement did not include permanent tariff-free trade for distilled spirits,” Swonger stated, highlighting the missed opportunity.
This American criticism mirrors the “huge disappointment” voiced by the French wine exporters federation, which faces the same 15% tariff on its products entering the US. Both industries have been caught in the crossfire of broader trade disputes, particularly those centered around automotive and industrial goods, and feel their interests have been sacrificed in the final agreement.
The joint statement, which focused heavily on a conditional reduction of US tariffs on EU cars, illustrates a tiered approach to the negotiations. While automakers may see a path to relief, the beverage alcohol sector in both the US and EU has been left to contend with trade barriers that hurt producers, importers, and consumers alike, proving that the deal is far from a comprehensive solution.