US President Donald Trump has stated that he will lift the 10 per cent duty on Irish whisky, which is currently subject to the US tariff regime for goods from the EU. The announcement was made on 13 September during a visit to Ireland. For the exemption to take effect, the US administration must formalise it through a formal decision.
Briefly about the main points
- Trump has promised to lift the US tariff on Irish whisky.
- The statement was made at a golf tournament during a visit to Ireland.
- At present, the drink falls under the US tariff regime for EU goods.
- The industry association is awaiting formal confirmation of the exemption.
- Producers are pushing for zero tariffs on all alcohol between the EU and the US.
Statement at the end of the visit to Ireland
Donald Trump He addressed supporters at a golf tournament held on a course owned by his family. This took place at the end of the US President’s 48-hour visit to Ireland.
According to him, he discussed the tariffs with the Prime Minister of Ireland by Michal Martin and an Irish golfer Shane Lowry. The President said that he had been asked on several occasions to make a special exception for the drink; his remarks were met with applause from those present.
How Irish whisky came to be subject to US tariffs
Irish whisky is included in tariff regime Washington’s tariffs on goods from the European Union. Wines and spirits were part of the trade agreement between the EU and the US.
Initially, a significant proportion of European goods were subject to a 15 per cent tariff under this policy. Following a review of US rules for dozens of trading partners, the rate for goods from the EU was reduced to 10%, and this was extended to Irish whisky.
The Manufacturers’ Association is calling for a wider abolition of tariffs
The Irish Whiskey Association has responded positively to the US President’s statement. The association’s director Eoin O'Caitin described Irish whisky as one of the most prominent symbols of trade links between the US and Ireland.
At the same time, the association has called for the reinstatement of the «zero-for-zero» principle for all alcoholic beverages in trade between the EU and the US. Producers are counting on the promised exemption being implemented in practice.
The US market and price pressure on manufacturers
The US is one of the world’s largest buyers of Irish whisky. The tariff affects the drink’s competitiveness, retail prices and producers’ revenues.
Small and medium-sized distilleries are particularly vulnerable to duties, as they have smaller profit margins than large international brands. Abolishing the levy could ease the price pressure on American importers and, to some extent, on consumers.
The exemption still needs to be formally processed
Trump’s statement is of a political nature, so formal action by the US administration is required for it to be fully implemented. Irish manufacturers expect the new tariff regime to be finalised in the near future.
If a zero tariff is introduced, it could serve as a bargaining chip for other EU alcohol sectors in negotiations with Washington. Producers of French cognac, Scotch whisky, Spanish wines and other goods may demand similar treatment.
