The ripple effect of the new US-EU trade deal will be felt deeply in the American job market, according to the Distilled Spirits Council of the United States. The organization has issued a stark warning that the continuation of tariffs on EU spirits could eliminate as many as 12,000 jobs across the country.
These job losses would not be in distilleries, but in the vast network of logistics, distribution, wholesale, and retail businesses that bring European products like Scotch, cognac, and gin to American consumers. This includes everyone from dockworkers and truck drivers to warehouse staff, sales representatives, and bartenders.
The council’s projection of a $1 billion retail loss is the driving force behind these potential job cuts. A 15% tariff on imported spirits makes them more expensive, leading to reduced sales. This decline in volume means less work for the entire supply chain that supports the industry, directly threatening American livelihoods.
This warning serves as a powerful reminder that trade tariffs are rarely a one-way street. While intended to protect or benefit certain parts of the US economy, they can inflict significant collateral damage on others. In this case, a deal aimed at boosting US industrial exports could end up harming the American service and retail sectors.
The Ripple Effect: US Job Market to Suffer from EU Spirits Tariff, Council Warns
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