Last week, Trump threatened to introduce tariffs of 200% on alcoholic drinks produced in the EU after it announced a 50% tariff on US whiskey.
The President said unless the whiskey tariff was removed, levies could be imposed on European wines, spirits, beers and liqueurs.
UKHospitality (UKH) said while it did not want to speculate on potential impacts, they were monitoring the situation.
A spokesperson for UKH told The Morning Advertiser (The MA): “We will be closely monitoring what knock-on effects on hospitality businesses we may see from new tariffs.
“Operators have already experienced intense drink price inflation over the past three years and combined with increasing costs across the board, have little to no capacity to absorb any further increases.”
Abusive taxing
The threat came after President Trump announced a global tariff on steel and aluminium.
In a post to Trump-owned social media service Truth Social on Thursday 13 March, the President said: “The European Union, one of the most hostile and abusive taxing and tariffing authorities in the world, which was formed for the sole purpose of taking advantage of the US, has just put a nasty 50% tariff on whisky.
“If this tariff is not removed immediately, the US will shortly place a 200% tariff on all wines, champagnes and alcoholic products coming out of France and other EU represented countries. This will be great for the wine and champagne businesses in the US.”
The knock-on effects of this, and any possible future levy imposed on UK exports, including beer, could hurt the economy, the British Beer & Pub Association (BBPA) warned.
A BBPA spokesperson told The MA: “Worth more than £500m annually to the UK economy, and shipped to more than 100 countries across the world, British beer is one of the largest exports in the food and drink sector, which is why it’s vital that it must be able to continue successfully trading.
“Tariffs would hurt jobs and the UK’s coffers, making it key Government strikes a successful relationship with US counterparts and keeps British beer flowing to its international markets.”
Meanwhile Belgium-based trade group SpiritsEurope, which has members including Diageo and Pernod Ricard, last week said it was “deeply alarmed” by the ultimatum.
Shared success
SpiritsEurope director trade and economic affairs Pauline Bastidon said: “This cycle of tit-for-tat retaliation must end now.
“We urge both sides to stop using our sector as a bargaining chip in conflicts that have nothing to do with us.
“The EU and US must de-escalate this dispute and ensure spirits are never again caught in the crossfire.”
The trade group added tariffs would be a step backward—hurting businesses, workers, and consumers on both sides.
Bastidon continued: “We are each other’s top markets—interwoven by investment, tradition, and shared success, so keep spirits out."
