US Economy Faces Blowback as Spirits Industry Warns of $1B Loss from EU Deal

The new US-EU trade agreement is facing criticism at home, with the American spirits industry warning of significant economic blowback. The Distilled Spirits Council of the United States has stated that the deal’s failure to remove tariffs on EU spirits could result in a retail loss of over $1 billion and cost 12,000 American jobs.
This highlights the unintended consequences of the trade pact for the US economy. While the deal is aimed at boosting US exports of industrial and agricultural goods, the continuation of retaliatory tariffs means American businesses that import, distribute, and sell European spirits like Scotch whisky, Irish whiskey, and liqueurs will suffer.
The council’s president and CEO, Chris Swonger, expressed deep disappointment that the negotiations did not achieve “permanent tariff-free trade for distilled spirits on both sides of the Atlantic.” His statement underscores that the beverage alcohol industry has been used as a pawn in a larger trade dispute, with American workers and businesses paying the price.
This domestic criticism complicates the narrative of the deal as a straightforward win for the United States. It shows that even a seemingly successful negotiation that extracts concessions can have negative repercussions for specific sectors of the US economy, demonstrating the complex and often painful realities of international trade disputes.