Taoiseach says Europe's response to Trump's 200% tariff threat on alcohol must be 'strategic'

LAST UPDATE | 22 mins ago

THE TAOISEACH HAS said that Donald Trump’s threat to impose 200% tariffs on alcohol from the EU is “a very serious issue” and that Europe must be “strategic” in how it responds. 

Micheál Martin said the Government would “engage strongly” with the European Commission on the tariff dispute, which could damage parts of the Irish economy.

Shares in the owner of Jameson whiskey have tumbled on the stock exchange and overall global stock markets slid yesterday, especially on Wall Street, as the US president launched a new volley in his trade war with the EU.

French drinks group Pernod Ricard, which owns Jameson Irish Whiskey alongside two champagne houses, fell by about 4%.

Moët Hennessy Louis Vuitton – also known as LVMH – owns several champagne houses including Dom Perignon and Hennessy cognac and saw a lesser slide of 1.1% yesterday.

Trump’s threat came on foot of the European Commission announcing on Wednesday that it was planning on putting a 50% levy on US whiskey as part of its rebuttal to the US’s wider tariff plan.

The Irish Whiskey Association has voiced serious concern about the trade war, outlining that the export value of Irish drinks to the United States is over €800 million a year.

Speaking to reporters in Washington DC today, Micheál Martin said Irish spirits, particularly Irish whiskey, has enjoyed “extraordinary growth” in the US market. 

Europe ‘has to be strategic’

“The European Union has published a list [of draft tariff proposals], but that is now subject to consultation. There is a rollover list, and a new list, but that will be subject to consultation,” he said. 

“We’re going to engage strongly now with the Commission in respect of that issue, because it is a serious issue, not just for Ireland, but indeed for other European member states as well.”

The Taoiseach said the EU “has to be strategic” in how it responds in the tit-for-tat trade dispute.

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“Europe actually enjoys a surplus in these products, in terms of the trade in spirits,” he said.

“I stand to be corrected, but it could be a three-to-one in favour of the European Union products. So Europe needs to be strategic in terms of how it approaches this.

None of this is easy in the sense that once tariffs start and counter-tariffs are put, it’s not good, and it can damage certain sectors of the economy.

“Given the strength of Irish spirits in the market, then that is a concern for us. Other countries, they will have other products for whom it will be a big concern.”

Calls for Brexit style business supports

Sinn Féin spokesperson on foreign affairs and trade Donnchadh Ó Laoghaire has urged the government must step up preparations for potential damaging US tariffs on Irish whiskey and other products.

Ó Laoghaire called for Ireland to begin preparing a programme of business supports, and for the government to start “diversifying in terms of markets we trade with” in future trade missions.

“The United States, Europe and Britain will always be our main trading partners, for reasons of language, culture, and long and deep relationships,” the Cork South-Central TD added.

“But there is potential to deepen trade with countries in South East Asia, other emerging markets, as well as other countries that may be affected by tariffs, including major economies such as Canada and Mexico.”

Ó Laoghaire said distilling is at risk in a US-EU trade war, alongside Ireland’s “pharmaceuticals, life sciences, aircraft leasing, as well as tech and financial services” sectors.

He called for the “preparation for supports” for businesses in the event of tariffs coming into effect. “This can take the shape of some of the supports put in place for Brexit, while building on the learnings from them,” Ó Laoghaire said.

‘No winner in a trade war’

Yesterday, the Irish Whiskey Association quickly voiced concerns about the threats by Trump, saying there is “no winner in a trade war”.

“The imposition of tariffs will impact on our businesses and our consumers,” the group said.

It warned that high tariffs in the sector could result in job losses and investment cuts, and could place businesses at risk.

“The need to remove spirits from this dispute is immediate, and the clock is ticking,” the group added.

With reporting from © AFP 2025 and Jane Moore

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