A Co Longford distillery has cautiously welcomed Donald Trump’s announcement that tariffs on Irish whiskey imports to the US will be removed, while producers of Irish cream say they have been left out of the measure.
The US president made the announcement during a speech yesterday at the Irish Open golf tournament in Doonbeg, Co Clare.
- Advertisement -
Speaking to spectators gathered around the 18th green, Mr Trump said he had discussed the tariffs on Irish whiskey with Taoiseach Micheál Martin and Irish Open winner Shane Lowry.
Lough Ree Distillery founder Michael Clancy said the news was encouraging, but warned that the industry would be waiting to see how the decision is implemented.
“I think we cautiously welcome it but the proof of the pudding is in the eating,” Mr Clancy said.
He said the 10% tariffs had affected Lough Ree Distillery despite its relatively small scale, with several major business opportunities put on hold.
“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 tariff announcement was not quite a game changer, but described it as highly significant and very welcome.
Before Mr Trump’s statement, Mr Cooney said the American market had declined by more than 5% last year and was continuing to fall by more than 5% this year.
Speaking on RTÉ’s Drivetime, he said the US remains the most important destination for Irish whiskey exports.
“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,” Mr Cooney said.
He added that distillers were also contending with rising production costs driven by energy prices and inflation.
“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 said.
For Coole Swan, however, the announcement brought frustration rather than relief, as the product does not meet the criteria for an exemption.
“So no reason for hope. I don’t believe it could be extended to Irish cream, sadly,” Mary Sadlier said.
Although Coole Swan contains whiskey, it will not benefit from the tariff removal because of the relevant tariff lanes and product classification.
Ms Sadlier told RTÉ’s Drivetime that US authorities apply strict rules to whiskey, with a specific definition agreed with the Irish government governing what can be classified as 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 said.
She said the tariffs had created an immediate additional charge for each bottle sold in the US.
“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.
