Trade Tensions: Turmoil for Irish Whiskey Industry

Micheal Martin has called for the EU to adopt a strategic approach around US tariffs, as he predicted difficulties for the Irish spirits industry. The Taoiseach was reacting to the threat of 200% tariffs on European wine, champagne and spirits – which was raised by US PresidentDonald Trumpon Thursday.

Mr Trump, who met the Irish premier at the White House on Wednesday, said he would impose those measures in response to moves by the European Commission, which announced it would re-introduce previously suspended tariffs on a range of US goods.

The two-way threats, which have yet to be implemented, are the latest developments in a deepening trade dispute between the US and the EU, and could significantly impact Ireland’s drinks industry. The Commission said its countermeasures would apply to US exports worth up to 26 billion euros and come in a two-step approach of re-implementing previous tariffs from April 1 and applying new measures from later that month.

It said it was doing so in response to “new, unjustified US tariffs on EU steel and aluminium”. Mr Trump took a hard line on the EU during his bilateral meeting with Mr Martin in the Oval Office on Wednesday, saying: “I’m not happy with the European Union, and we’re going to win that financial battle.” The Taoiseach told reporters on Thursday that alcohol tariffs were not specifically discussed during the meeting, but added that the only way to resolve a deepening trade dispute between the US and EU is “throughdialogue”.