The looming threat of a 50% tariff on US whiskey exports to the EU is causing concern among US distillers and policymakers. This potential tariff, an increase from the suspended 25% duty in January 2022, will take effect in 2024 if no new agreement is reached.
The booze duties are tied to the stalled negotiations over EU - US Steel and Aluminium trade. European negotiators are considering taking their steel and aluminum dispute with the US to the World Trade Organization, Bloomberg reports.
In June 2018, the EU imposed a 25% retaliatory tariff on American whiskeys in response to the Trump Administration tariffs on European Metals.
In 2021 the EU and US gave themselves a two-year window to reach an agreement on the so-called Global Arrangement on Sustainable Steel and Aluminum to resolve the dispute. GASSA negotiations have stalled on account of different U.S. and EU approaches to linking market access to the carbon intensity of traded goods, and may result in the deal being indefinitely shelved.
December 4, Trevor Sutton and Mike Williams of the Center for American Progress released a report on the Steel and Aluminum Arrangement which details the current state and stakes of play.
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