From the Irish whiskey to Italian cheese, American tariffs rattle EU exporters

Along the “last time in Ireland” on the rough west coast of the country, the business of June O’Connell Skellig Six18 makes a gin and whiskey-intensive process in the time, guided by wind, rain and cool temperatures that roll throughout the year by the Atlantic.

America was a natural target market after their first spirits were ready to sell in 2019, according to O’Connell, given their strong introduction to Ireland and the great appetite for first -class drinks. As an independent supplier, negotiations with distributors, marketers and retailers took more than a year, and its first products left Carry County in November 2023 to launch the United States in early 2024.

Then the political tide began to turn to the White House.

“After it became clear which time things were going, people were trying to get many products from the product before the tariffs. We have made part of this, but now the warehouses are full, the importers say they are not sending more and only big customers are prioritized,” O’Cnol told CNBC.

Since the beginning of the year, the unpredictable tariff messages of President Donald Trump have accumulated businesses of all sizes.

In particular, the European Union has attracted Trump’s rage for its 198 billion euros ($ 231 billion) trade surplus of goods with the United States

He claims that tariffs are needed to create a more balanced connection; However, EU employees claim that trade is more even for goods, services and investment and promised to increase the purchases of oil and gas to reduce the difference.

Last weekend Trump has announced that he plans to do so Strik EU with a tariff rate of 30% Since August 1, after the last -minute negotiations have failed to create a frame deal. Huge uncertainty now hangs Whether an agreement can be reached in the next two weeks and what details or compromise may contain.

The Trump Administration has already imposed a 10% base duty on EU imports, along with higher percentages for Cars and MetalsS

The fact that UK’s trade deal with the United States Maintaining a 10% base rate with some exceptions to the sector has made many believe that it can be the best hope in Europe. Financial times reported on Friday The fact that Trump is now taking on a more difficult line in EU negotiations and insists on minimum tariffs of 15-20%, citing people informed about the talks. CNBC has not confirmed the report independently.

EU foods and drinks with the United States cost almost € 30 billion, and the Fooddrinkeurope trade group has warned this week that any escalation in tariffs – which are usually paid by the importer – will hit European manufacturers and farmers while limiting the choice and increases the costs of US consumers.

Even a 10% import tariff in the United States imposed in April has been a blow to the business, said Skellig Six18’s O’Connell, with the final impact on the consumer’s price being much greater after additional costs have been transferred to the supply chain.

“In terms of prices, 30% (tariffs) would be bankrupt. The whole situation definitely suffocates your ambition,” she added.

For Franc Choisne, President of the French Distillery Combier, 10% Tariff is almost manageable. Founded in 1834, Combier is best known for making the Liqueur Triple Sec – used in Margarita’s cocktails – and the United States represents about 25% of its total sales.

Choisne, however, notes that the 10% tariff comes to the top of a hit from the currency market. A Lag This year, it made it more expensive for the United States to import foreign goods, an additional shock absorber on request.

30% Tariff, plus the effects of the currency course, would mean that the total rate of 45-50% is reflected in the final consumer prices, he said, a level that can halve his US company’s sales.

“We understand that President Trump wants a better balance between import and exports, but at this level of 30%, then, of course, the EU will answer, trade will be affected and this will be a situation with loss of loss,” he said.

American exporters of products like bourbon He would also suffer, said Choisne Factor maintained him optimistic, that the two countries would eventually negotiate a deal with a zero tariff for the spirits industry.

In the province of Lombardy in Italy, more than half a million huge wheels of Grana Padano cheese are deployed by the supplies of Family Business Zanetti every year. The company, which also makes Parmesan and other hard cheeses, exports over 70% of its products, and the United States represents 15% of the total turnover.

According to his president and CEO, Attiilio Zenetti, the instability created by the tariffs this year is unlike all before, with controversial reports generating a huge amount of additional administrator.

“It gives a lot of uncertainty and does not allow us to organize a true strategy,” he said, Bar tries to deliver as many products as possible before higher prices come into force.

Zenetti said the greater tariffs for the dollar plus have already increased retail prices in the US by 25%. “The more increasing increase, of course, will directly affect the wholesale and retail prices, and we are afraid that this will affect the volumes,” he said.

Other places, large corporations are considering transferring at least some production to the American German Industrial Giant SiemensFor example, he told CNBC that he had taken steps to locate production, and the Bosch engineering group also said it was a priority for a local local model, as it seemed to be expanding its business in North America.

However, for Skellig Six18’s O’Connell, moving production is not possible. This is because the production of “origin -protected” objects – such as Irish whiskey, Italian Parma hammer or French champagne – cannot be moved elsewhere.

Instead, O’Connell focuses on new potential markets in Asia, Africa and Latin America, but noted the difficulty of doing it in places without solid existing whiskey sales. Meanwhile, Franc Choisne from Comber Distillery indicated that it is a new resource-intensive one, expensive, and it can take years. In other words, it is not easy to repair for a decline in US sales.

“At times like this, I just try to remember that I am in an industry that is nearly 700 years old requires patience and reminds you that things do not last forever,” O’Connell said. “You just have to continue to control the controls.”

– Sam Meredith from CNBC contributed to this story.