A coalition of 57 alcohol industry groups has warned that the United States planned 15 per cent tariff on European Union goods could reduce alcohol sales by nearly $2 bn and put 25,000 American jobs at risk.

The letter, addressed to U.S. President Donald Trump, was signed by organisations representing major European producers such as Diageo and Pernod Ricard, alongside U.S. whisky and wine producers, glass suppliers, retailers, and restaurants, Reuters reports.

Washington and Brussels recently agreed on a 15 per cent import tariff on most EU goods after negotiations halved the initially threatened rate, averting a wider trade conflict. However, the agreement did not exempt wine and spirits, which the industry had strongly requested.

Reuters added that the letter, sent by the Toasts Not Tariffs Coalition, comprising trade associations mainly from the wine and spirits supply chain, called for a better deal to ensure “fair and reciprocal trade” for those industries.

It highlighted that the tariff threatens 25,000 U.S. jobs, including those in restaurants and nightclubs, as well as nearly $2 bn in sales. This impact comes just before the sector’s busiest period, spanning October to December.

The industry representatives warned that tariffs would increase menu prices, damage American businesses, and worsen existing challenges.

Wine sales have been under pressure, losing market share to spirits, which have also overtaken beer in recent years. Factors such as rising living costs and shifts towards healthier lifestyles are further affecting demand.

According to Reuters, the United States remains the largest market for many European wine and spirit makers, while Europe is a major export destination for U.S. spirits such as bourbon.

In response, the European Union has included some U.S. alcohol products on a list of potential retaliation targets but has suspended any action for six months.