By Emma Rumney
LONDON (Reuters) -The United States’ 15% tariff on EU goods could reduce the value of alcohol sales by almost $2 billion and put 25,000 U.S. jobs at risk, a group of 57 alcohol industry groups wrote in a letter sent to U.S. President Donald Trump on Tuesday.
The letter was signed by organisations representing major European producers, including Diageo and Pernod Ricard, U.S. whiskey and wine producers, as well as glass suppliers, retailers and restaurants.
Washington and Brussels agreed last month to a 15% import tariff on most European Union goods after talks that halved the threatened rate and averted a bigger trade war.
The negotiations did not result in the exemption for wine and spirits that the industries had pressed for.
The letter was addressed to Trump from the Toasts Not Tariffs Coalition, which is formed of trade associations mostly from the wine and spirits supply chain. It called for a better deal ensuring “fair and reciprocal trade” for those industries.
It said 25,000 U.S. jobs, including in restaurants and nightclubs, and nearly $2 billion in industry sales were at risk from the 15% tariff. It hits the sector just ahead of its busiest period, spanning October, November and December. The letter did not explain the industry’s calculations.
“As we approach the critical holiday season, a period that is essential to the success of our industries, we implore you to secure this important deal for the U.S. as soon as possible,” the letter read, adding it would represent a win for American workers, businesses and consumers.
In a statement, the industry representatives said the tariffs would push up menu prices, damage American businesses and exacerbate existing problems and challenges.
Sales of both wine and spirits are under pressure. Wine has been losing market share to other categories, such as spirits, which also overtook beer in recent years.
But even there, high living costs and a shift towards healthier lifestyles are deterring customers.
The U.S. is by far the largest market for many European wine and spirit makers, while Europe is a major export destination for U.S. spirits like bourbon.
The EU has included some U.S. alcohol on a list of possible targets for retaliation, though this week it suspended any response for six months.
(Reporting by Emma Rumney; editing by Barbara Lewis)
