Irish whiskey and dairy spared as EU revises US trade retaliation plan

Tobacco, textile fabrics, video game consoles, orange juice, and soyabeans will have tariffs of between 10% and 25% imposed. 

Tobacco, video game consoles, soyabeans and orange juice are among the list of products to be included in the European Commission's proposed list of countermeasures in response to duties on aluminium and steel. 

The EU is expected to confirm its proposed list of tariffs later this week, with wine and dairy being removed from the plans.

The European Commission has also exempted bourbon from its proposed list of counter-retaliatory measures against the US following heavy lobbying from several member states.

The revised list, seen by the Irish Examiner, will now target a narrower range of US products with duties of 10% to 25% being applied, following extensive lobbying by Ireland, France and Italy who have sought to protect their significant alcohol industries from an escalating tit-for-tat trade war. 

In addition to Ireland's whiskey sector, France and Italy's wine and spirits sectors would have been hit heavy by threatened tariffs, with the three countries pushing hard to mitigate their exposure to rising levies on alcohol. 

Other products, including tobacco, textile fabrics, video game consoles, orange juice, and soyabeans will have tariffs of between 10% and 25% imposed. 

The removal of bourbon from the proposed list represents a victory for Irish whiskey makers who feared EU countermeasures would result in a retaliatory 200% tariff being placed on EU alcohol, as threatened by US President Donald Trump. 

More than 40% of the €1bn in Irish whiskey exports went to the US last year, making it a major market for Irish distillers. Compared to the more than €420m worth of Irish whiskey exports going to the US, bourbon imports to Ireland was valued at just €8m, making any escalation especially painful for distillers on this side of the Atlantic. 

Irish dairy producers will also likely breathe a sigh of relief, with the US becoming an increasingly vital market for Irish products. Around 12% of Irish dairy exports went to the US in 2024, according to figures from Bord Bia, totalling €750m in the 12 month period. 

Speaking this week, EU trade commissioner Maros Sefovic said the countermeasures in response to the Trump administration's steel and aluminium tariffs will be less than the €26bn worth after taking into account remarks from member states.

"When it comes to steel, aluminum and derivatives... we are talking about €26bn. We are finalizing the list... but I can tell you that it will not be up to the level of €26bn, because we've been listening very carefully to our member states," Mr Sefovic said, adding that the EU wanted to "make sure that the burden is spread fairly among all member states."

The leaders of EU countries are due to vote on Tuesday on a package of counter measures responding to US tariffs on steel and aluminium already in effect.