$1 Billion in U.S. Sales at Risk as Tariffs on EU and UK Spirits Remain Unchanged

President Donald Trump has signed a new executive order updating the United States’ reciprocal tariff system, leaving tariffs on European and UK spirits such as Scotch whisky, Cognac, and Irish whiskey unchanged. The order, which took effect for goods entering the country from November 13, 2025, removes certain agricultural products from the list of items facing extra duties but does not extend this relief to imported spirits from the European Union or the United Kingdom.

The reciprocal tariff system was established earlier this year under Executive Order 14257. It allows the U.S. to match or exceed tariffs that other countries impose on American goods. The latest update is part of ongoing efforts by the administration to adjust trade policy in response to international tariff practices.

While some agricultural goods have been taken off the tariff list in this round of changes, EU and UK spirits remain subject to higher duties. This decision has drawn criticism from industry groups. Chris Swonger, president and CEO of the Distilled Spirits Council, said in a statement that excluding these products from tariff relief is a setback for the U.S. hospitality sector, especially as the holiday season approaches.

Swonger noted that EU and UK spirits are value-added agricultural products not produced domestically in the United States. He pointed out that alcohol sales make up about 21 percent of total restaurant revenue nationwide. According to analysis by the Distilled Spirits Council, a 15 percent tariff on EU spirits could result in $1 billion in lost U.S. sales and lead to the elimination of 12,000 American jobs.

The Department of Commerce and the United States Trade Representative will continue monitoring market conditions and may recommend further changes if necessary. For now, European and UK spirits will continue to face full reciprocal tariffs when imported into the United States. The decision comes at a time when many restaurants and bars are preparing for increased business during the holiday season, raising concerns among importers and hospitality businesses about potential impacts on sales and employment.