LONDON/PARIS, March 12 (Reuters) - Europe's spirits and
cosmetics industries hit back at the European Commission's plan
to slap tariffs on U.S.-made goods on Wednesday, saying it put
the continent's far larger trade with the United States in those
sectors at risk.
The European Commission said it would impose tariffs on 26
billion euros ($28.31 billion) worth of U.S. goods from next
month, ramping up a global trade war in response to U.S. tariffs
on steel and aluminium.
The move will include the re-imposition of suspended tariffs
on goods like bourbon whiskey, as well as new levies on a host
of other products, with other spirits, makeup and essential oils
on the list of possible targets.
Industry association spiritsEurope and French cosmetics
association FEBEA said Brussels was putting European-produced
goods in those sectors, which have large trade surpluses with
the United States, in the firing line for retaliatory tariffs.
"There's an enormous risk that we'll find ourselves with
retaliatory measures that we didn't ask for," said FEBEA
Secretary General Emmanuel Guichard, who added that he has been
urging Brussels for weeks to stop the tariffs from going ahead.
FEBEA, members of which include L'Oreal and Estee
Lauder, said France imports around 500 million euros a
year of American cosmetics, but sends 2.5 billion euros of
beauty products in the other direction.
European spirits makers also feared retaliation from the
U.S., their largest export destination, said Ulrich Adam,
director general of spiritsEurope, which represents top U.S. and
European producers like Diageo ( DEO ) and Jack Daniel's maker
Brown-Forman ( BF/A ).
American whiskey exports to Europe stood at $699 million in
2024, according to the Distilled Spirits Council of the United
States, which added that the previous tariffs on bourbon imposed
in 2018 caused a 20% decline.
European spirits exports to the U.S. stood at 2.9 billion
euros in 2024, according to spiritsEurope.
"We're being thrown, by our own government, under the bus,"
said a top executive at a large European spirits producer.
France, Spain and Italy had all asked the European
Commission to exclude wine and spirits from the list of targeted
products, the person continued, asking not to be named in order
to speak freely.
Spain's Economy Ministry said it was responding to the needs
of all affected sectors. A French government source said there
was talk of removing bourbon from the list of reinstated
tariffs, but revisions would have prevented a rapid EU response.
Italy's government did not immediately respond to a request
for comment.
SpiritsEurope said many European producers also make U.S.
spirits and could be directly affected by the levies. U.S.
spirits companies are also invested in Europe and throughout the
sector's supply chain, so hurting them puts jobs at risk, it
continued.
Shares in U.S. beauty firms Estee Lauder and Elf Beauty
fell nearly 5%. Spirits stocks were led lower by Brown-Forman ( BF/A ),
which was down 7%.
"We have done some things to try to get us prepared, but
it's a tough spot," Brown-Forman ( BF/A ) CEO Lawson Whiting told the UBS
Consumer and Retail Conference in New York on Wednesday.
($1 = 0.9184 euros)