US Tariffs Hit European Beer Makers
The “Brewers of Europe” association has warned of the consequences of the Trump administration’s trade policies, particularly the 25% tariffs on EU beer imports to the US. The increased tariffs could force EU breweries to close, leaving thousands of people jobless.
According to an article in the Financial Times, Julia Leferman, the CEO of the association, has called on the EU to protect its breweries from the new US tariffs. The US Trade Ministry had added beer and empty aluminum cans to the list of products affected by the tariffs on aluminum earlier this week.
The article reports that European breweries are currently unclear about whether the new tariff applies to all beer or only to beer in aluminum cans. The “Brewers of Europe” association represents large producers such as InBev, Heineken and Carlsberg.
Leferman was quoted as saying, “We are calling on the Commission to use all diplomatic channels and find a way to reduce these tariffs through negotiations or countermeasures, as we have become a collateral victim.”
The EU’s Trade Directorate has been in contact with US officials, but no clarity has been received on the scope of the tariffs. The association has stated that local companies exported beer worth €870 million to the US last year. The loss of the US market could result in the loss of 100,000 of the 2 million jobs in the industry.
In the context of the introduction of historically unprecedented tariffs, Trump has announced minimum tariffs of 10% on all imports to the US and additional “reciprocal” tariffs for dozens of countries. According to the US president, an unfair trade imbalance exists with the US in the affected imports. EU exports to the US have been met with 20% “retaliatory” tariffs. The president stated that the US is being “ripped off” by many countries through “harmful measures like currency manipulation and exorbitant value-added taxes”.