A tariff reprieve for Irish whiskey could be on the horizon after US President Donald Trump told a crowd in Co Clare that he plans to remove import duties—a pledge Irish producers say would bring relief, even as they wait to see if it becomes reality.
A distillery in Co Longford has given a cautious welcome after US President Donald Trump said he will lift tariffs on imports of Irish whiskey.
Mr Trump used his speech yesterday at the Irish Open golf tournament in Doonbeg, Co Clare to announce he is to remove the tariffs.
He told the crowd who had congregated on the 18th green that he had spoken with Taoiseach Micheál Martin and Irish Open winner Shane Lowry about US tariffs on Irish whiskey.
Lough Ree Distillery founder Michael Clancy said the sector is reserving judgment until the decision is implemented. “I think we cautiously welcome it but the proof of the pudding is in the eating.
“We hope it will happen and I was listening to Olaf Gill earlier and he said there are a lot of products on the list that they would like to see tariffs lifted from,” he added.
Mr Clancy explained that even as a small producer, Lough Ree has felt the impact of the 10% tariffs on Irish whiskey.
“For us, it has meant that some big opportunities for our business have been put on hold so hopefully this will allow those projects to proceed,” he added.
Pat Cooney, of Boann Distillery, said the planned change would not transform the industry overnight, but described it as an important step and welcome news.
Before Mr Trump’s announcement, he noted that the American market had fallen by more than 5% last year and is trending more than 5% this year.
Speaking on RTÉ’s Drivetime, Mr Cooney said, “The American market is the biggest market for Irish whiskey. It takes about 40% to 43% of all Irish whiskey, so it is very important indeed.”
He also said distillers have been squeezed by rising costs, with energy and inflation pushing expenses higher.
“The price of gas is a serious cost for the business and shipping rates have gone through the roof and it’s difficult to get shipping. It’s a little bit of welcome news in the midst of a very difficult environment,” Mr Cooney added.
However, the prospect of lifted tariffs has not reassured everyone in the drinks sector. Mary Sadlier of Coole Swan said Mr Trump’s announcement is a source of irritation because her product does not qualify for an exemption.
“So no reason for hope. I don’t believe it could be extended to Irish cream, sadly,” she said.
The Coole Swan product contains whiskey, but she said it still falls outside the tariff relief because of tariff lanes and classification.
Speaking on RTÉ’s Drivetime, Ms Sadlier said the US is “very strict about whiskey”, adding that “they have a very specific classification in the US drafted with the Irish government about what is Irish whiskey.”
“So they wouldn’t even classify an Irish whiskey liqueur, where you might be adding honey or something to it and it’s a liqueur, they will not allow that in,” she added.
Ms Sadlier said the tariffs translate directly into higher costs per bottle.
“It’s $2 for us per bottle with the recent tariff rate. Nobody likes to pay more for any product. It is at the behest of the various governments.”
“Whiskey is a very big product particularly in the US market but it’s a bit disappointing because Irish cream is a very uniquely Irish product.
“You have to have very specific ingredients known to be an Irish cream liqueur so it’s a bit disappointing it isn’t remembered when we come to this discussion” she added.
