Off-trade

Trump’s vow to lift tariffs on whiskey applies to Ireland and not the EU

US president Donald Trump's weekend visit to Ireland resulted in him promising to drop the 10% tariffs on Irish whiskey being sold into the US but other European countries will still be subjected to tariffs
Irish president Catherine Connolly welcomes US president Donald Trump to Aras an Uactaráin

Irish president Catherine Connolly welcomes US president Donald Trump to Aras an Uachtaráin

 

During Donald Trump’s weekend visit to Ireland to attend the Irish Open at his golf resort Doonbeg in Co Clare, he made the surprise announement that Irish whiskey tariffs would be discontinued. Up to the point, whiskey made in the Republic of Ireland that is sold into the US was subject to a 10% tariff, putting it at a disadvantage with Scotch and Northern Irish whiskey which currently has no tariff.

The announcement has been welcomed by the Government and by the Irish whiskey industry.

At Shannon Airport before leaving for the United States on Air Force One yesterday evening, Trump was asked whether it would apply only to Ireland or across the EU.

He said: “Just Ireland.”

“It was very unfair because others had the relief and they didn’t, so I thought I’d do it. Actually, Shane [Lowry] asked me about it, too. A lot of people asked me.”

It is understood the Taoiseach raised the issue of tariffs on Irish whiskey with Trump during their meeting at Farmleigh on Saturday and the US president promised to look at it.

Trump announced the move during his speech at the prizegiving ceremony for yesterday’s Irish Open at his golf resort in Doonbeg, where  Shane Lowry won by 11 shots.

He said: “I want to mention one thing. Taoiseach and I talked about it and Shane talked about it and everyone has been bugging me saying ‘would you do me a favour? It’s so unfair what’s going on. Could you possibly take the tariffs off of Irish whiskey?’

“And I said on behalf of the United States of America, I am going to take the tariffs off Irish whiskey.”

A huge cheer and a round of applause from the crowd followed his remarks.

Tánaiste and Minister for Finance Simon Harris also welcomed the announcement.

“A welcome announcement of economic significance from President Trump this evening that reflects the very positive engagement we’ve had with the US administration on tariffs over the 18 months.”

The director of the Irish Whiskey Association Eoin Ó Catháin welcomed the move, saying it will be a “gamechanger” for the industry.

Speaking on RTÉ’s Morning Ireland, O’Catháin said the US is the biggest and most important market for Irish whiskey, and this move will bring the Irish sector back to full equity with scotch whiskey which is its biggest competitor in the US market.

O’Catháin said preliminary figures from last year show that sales were down around 9%.

“This isn’t solely attributable to tariffs,” he added, “but they have definitely played a role”.

“In addition, the first half of this year our export figures were down just over 20%, he said.

Ó Catháin said: “The US is our biggest market, it represents thousands of jobs, millions in investments and it has been under pressure, I suppose, over the last year and a bit because of that tariff.

“We’re delighted to see it removed.

“We’ll continue to work with all of our colleagues in the US, in Brussels, here in Dublin to ensure this full tariff liberalisation will take place.”

He added the association would “like to see a return to the zero-for-zero trading arrangement for all of our drinks exports.”


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