Shares in the owner of Jameson whiskey took a significant hit on the stock exchange following Donald Trump’s threat to impose a 200% tariff on European alcohol imports.
Global markets slid yesterday, particularly on Wall Street, as the US president escalated his trade war with the European Union. French drinks group Pernod Ricard, which owns Jameson Irish Whiskey along with two champagne houses, saw its stock fall by approximately four percent.
Luxury conglomerate LVMH, owner of several champagne brands including Dom Perignon and Hennessy cognac, experienced a more modest decline of 1.1%.
Trump’s threat came in direct response to the European Commission’s announcement on Wednesday that it planned to implement a 50% levy on US whiskey as part of its retaliation against broader US tariff measures.
The Irish Whiskey Association expressed serious concern about the escalating trade tensions, noting that Irish drinks exports to the United States exceed €800 million annually.
Sinn Féin spokesperson on foreign affairs and trade, Donnchadh Ó Laoghaire, has called on the government to prepare Brexit-style business supports and diversify Ireland’s trading relationships.
“The United States, Europe and Britain will always be our main trading partners, for reasons of language, culture, and long and deep relationships,” the Cork South-Central TD said. “But there is potential to deepen trade with countries in South East Asia, other emerging markets, as well as other countries that may be affected by tariffs, including major economies such as Canada and Mexico.”
Ó Laoghaire warned that beyond distilling, Ireland’s “pharmaceuticals, life sciences, aircraft leasing, as well as tech and financial services” sectors could all be at risk in a US-EU trade war.
The Irish Whiskey Association responded quickly to Trump’s threats yesterday, emphasizing that “there is no winner in a trade war” and warning that high tariffs could result in job losses, investment cuts, and business failures.
“The need to remove spirits from this dispute is immediate, and the clock is ticking,” the group added.