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The UK’s hospitality and licensed trade industry is facing potential economic disruption following the recent tariff announcement by President Donald Trump.
Yesterday (2 April), Trump confirmed sweeping global tariffs set to take effect from 9 April, imposing a minimum 10% tariff on almost all countries. Notably, the European Union is subject to a 20% tariff, while the UK faces a 10% levy.
These tariffs are expected to have significant repercussions on the UK’s pub and hospitality trade, particularly in the spirits sector, which relies heavily on international supply chains.
Premium drinks such as Scotch whisky, tequila, and bourbon are likely to be affected, as are the costs of essential production materials like glass and cork, which are frequently sourced from overseas.
The Distilled Spirits Council of the US (DISCUS) expressed concern over the impact of these tariffs on the global spirits trade. Industry experts warn that increased costs may be passed on to consumers, leading to potential price hikes in UK pubs, bars, and restaurants.
Trump’s trade policy has previously resulted in disputes between the US and the EU, notably during his administration’s imposition of steel and aluminium tariffs. These led to retaliatory tariffs on American and European goods, including whisky and other spirits, further complicating trade relationships.
The Scotch Whisky Association has voiced its disappointment at the potential ramifications for one of the UK’s most valuable exports. A spokesperson for the association stated: “The industry is disappointed that Scotch whisky could be impacted by these tariffs. We welcome the intensive efforts by the UK government to reach a deal with the US administration, and we continue to support this measured and pragmatic approach towards a mutually beneficial resolution.”
A Brewers of Europe spokesman said:
“The US announcement of 20% reciprocal tariffs on all EU products will create losers on both sides, across the society and economy.”
“However, it is the addition of Beer to Annex 1 on aluminium derivative products facing a 25% tariff that is particularly concerning to Europe’s ten thousand breweries. The US is European brewers’ second most important export market for beer in both value and volume terms. We are currently seeking further clarity on the exact products captured by this new announcement.”
“Brewing is a key driver of growth, investment and employment on both sides of the Atlantic and a major part of people’s lives on both continents.”
“With value chains that stretch from the farmers grafting in the fields to the hardworking staff in the bars, it is critical to de-escalate and work towards a solution that cuts tariffs on beer and thus benefits consumers, workers and businesses in both the EU and the US.”