Americans may have to cut their intake of booze, as all U.S. importers of alcoholic beverages have stopped taking deliveries from Portugal and the rest of the European Union.
This is part of the tariff war started by President Trump, who happens to be a teetotaller. He has created a “terrible problem” for a “gigantic business,” according to a very sobering statement from the President of the Portuguese National Association of Traders and Exporters of Wines and Spirits, Paulo Amorim.
President Trump recently threatened a heavy tariff on all forms of heady hooch, but his policy direction remains erratic, often subject to sudden reversals.
The American booze ban follows the Trump administration’s decision to impose 20% tariffs on all popular inebriants. It also seems to have something to do with a proposed E.U. 50% tariff on bourbon, which, for those not familiar with it, is a strong American whiskey.
Last year, Portugal exported over €100 million worth of wine to the U.S., while the E.U. as a whole exported €4.8 billion. Now, with hopes of surpassing €5 billion in exports this year, the E.U. is expected to lose €100 million per week.
It is said that there is no other market in the short or medium term that can fully absorb those who have never suffered the hangovers of too much—such as American whiskey.
The loss of exports to the U.S., which has previously accounted for 28% of E.U. wine shipments, is significant. Alternatives being explored include increasing wine exports to Canada, Mexico, Japan, and China.
Actually, it is all so complex and unpredictable that you might need a glass of wine or a wee dram of whisky to keep up with what’s going on with subjects such as duty-free allowances for travellers. Who knows in this fast-changing world, but you can probably still enter the E.U. with duty-free allowances of one litre of spirits or two litres of other alcoholic drinks.
Written by Len Port
Edited by Catriona Anderson.
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