Big booze tells Trump E.U. tariffs jeopardize $2 billion in sales — and 25,000 jobs

A coalition of 57 U.S. alcohol industry associations sent President Donald Trump a letter Wednesday urging him to exclude spirits and wine from tariffs placed on the E.U.

The Toasts Not Tariffs Coalition said in its letter that if alcohol is included in the 15% tariff rate placed on the E.U., then the industry could lose nearly $2 billion in sales and more than 25,000 jobs. 

“The damage to the U.S. hospitality sector resulting from tariffs on wines and spirits will have lasting, negative impacts,” the letter said. 

The threat of potentially more employment losses for American workers comes days after a concerning jobs report showed that weak payroll gains in July and downward revisions to previous months marked the job market's sluggish stretch in years. President Trump, in response, even fired the Bureau of Labor Statistics Commissioner Erika McEntarfer. 

New data published Tuesday by the Institute for Supply Management also found that employment continued to dip in July in the services industries — with the accommodation and food services sector seeing the biggest employment decline. 

“The restaurant industry is concerned that the inclusion of European wine and spirits in the recently announced U.S.-EU trade agreement will increase costs and push up menu prices for consumers who want these choices,” Michelle Korsmo, CEO and president of the National Restaurant Association, said in a coalition press release. “For specific cuisines or restaurant brand positioning, international wine and spirits are an essential part of a restaurant’s unique and varied beverage alcohol offering and part of the expectations of their customers.” 

On July 28, the Trump administration announced a trade deal with the E.U. finalizing the 15% tariff rate for most goods, excluding steel, aluminum, and copper, which all face a 50% tariff rate. The U.S. Census Bureau and the U.S. Bureau of Economic Analysis found that the U.S. had a trade deficit with the E.U. of $9.5 billion as of June. 

Billions of dollars lost in wine and spirits sales doesn’t seem so far fetched. A recent analysis from the Tax Foundation said that liqueurs and spirits have the highest risk of price hikes for consumers due to tariff impacts. It added that the EU is likely to see $31 billion worth of food exports to the U.S. impacted. 

Due to the nature of the product which is “often tied to specific geographical regions,” the coalition said that “production of these products cannot simply be relocated to circumvent tariffs.”