Some Irish whiskey exporters may be forced “to reorientate their focus away” from the US if a 15 per cent tariff rate applies as part of the recently agreed EU-US trade deal, the head of the Irish Whiskey Association (IWA) has warned.
“With a higher tariff, the costs associated with exporting will increase and we could see price on shelf go up also,” IWA director Eoin Ó Catháin said.
“I don’t think a 15 per cent tariff would exclude people from exporting per se, but it may see certain companies re-orient strategy towards other markets,” he said.
Mr Ó Catháin was responding to reports that the EU had so far failed to secure a carve out for the sensitive wine and spirits sector.
READ MORE
“[It is] not our expectation that wine and spirits will be included in the first group [of exemptions to be] announced by the US tomorrow, therefore those products will be captured by the 15 per cent ceiling,” said Olof Gill, EU trade spokesperson, adding that negotiations continued.
The statement comes as US trading partners are rushing to finalise tariff deals ahead of president Donald Trump’s deadline of August 1st. Last weekend, the EU agreed a deal for tariffs of 15 per cent on most exports to the US.
The European Commission also signalled on Thursday that a planned EU-US joint statement fleshing out their trade deal could be delayed, saying that “more time is required” to finalise the text.
EU officials had previously expected the joint statement to be issued on Friday.
However, the commission said it still expects the US to implement the 15 per cent tariff rate and a number of agreed exemptions as of Friday, though it said this was dependent on Trump signing an executive order.
“The Irish Whiskey Association notes media reports today which indicate that our products will face a 15 per cent tariff when exporting to the USA from August 1st,” Mr Ó Catháin said.
“We understand that negotiations will continue past this deadline, and a return to the zero-for-zero remains a priority for the spirits sector in both the USA and the EU,” he said.
“The application of this tariff will increase costs for both exporters and consumers, and will have knock-on effects on the hospitality and tourism sectors in the USA,” he said.
“The zero-for-zero trade arrangement, which removed tariffs on our products in 1997, worked well for over three decades. It has never been more important to return to this as soon as possible,” he added.
Meanwhile Trump said on Thursday he would delay the higher rate of reciprocal tariffs on Mexico by 90 days.
Following a call with Mexican President Claudia Sheinbaum, he said he would extend “the exact same Deal as we had for the last short period of time”.
“The complexities of a Deal with Mexico are somewhat different than other Nations because of both the problems, and assets, of the Border,” he wrote.– additional reporting by The Financial Times
