02-07-2025
- Business
- Irish Independent
Potential job losses in Leitrim if heavy tariffs imposed on alcohol says councillor
An escalation of tariffs on alcohol products produced in Ireland could severely impact producers in counties like Leitrim, Donegal, and Sligo where multiple distilleries are operating.
The EU and the United States are currently in talks in relation to trade and tariffs.
The talks are due to conclude before next Wednesday, July 9, at which point the US president Donald Trump, had threatened tariffs of 50pc will be imposed if agreement is not reached.
Earlier this year, large rate tariffs were paused for 90 days but there is currently a 10pc tariff on EU goods going into the United States.
Leitrim Councillor Enda McGloin said the potential tariffs on alcohol would not only impact the sale of the products but also affect the growth and expansion of businesses.
He said distilleries such as Drumshanbo Gun Power Gin in Co Leitrim need their product to be exempt from the tariffs or there is a risk of job losses.
'At Drumshanbo Gun Power Gin, 35% to 40% of product produced is currently going to the United States.
'My concern is if the trade agreement was to fall away and the American government proceed to impose a very serious level of tariffs on whiskey or other spirits produced here.
'Another concern is that in order to have a negative impact against Donegal Trump and the Republican party, that the EU would target Bourbon.
'This would trigger further reprisals which could then impact the sale of Irish Whiskey, French wines and numerous other goods.
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'That would trigger a trade war which could add tariffs of up to 25% to 30% or more and that would have a dramatic impact on the future growth of enterprises here.
'It would also have a negative impact on long term growth and it may even result in job layoffs as there is a significant amount of people employed in the sector.
'Any sort of a scenario where the drinks industry within the European Union is targeted, it transfers itself down to the ground here in Leitrim and the Northwest,' said Cllr McGloin.
Cllr McGloin added that Tánaiste Simon Harris has been in negotiations with Europe and it is hoped there will be no reprisals against Bourbon.
'He is hopeful that a coercive trade agreement between the European Union and the United States could be reached and would negate the need for any major tariffs.
"We have to see what the outcome will be on the talks.
"The drinks industry has asked the Irish government to support non retaliatory tariffs against Bourbon and the government has agreed on that and have let their views known to the European Union.
"We have support in countries like France, Holland and other major producers in the EU.
"I am glad to see the Minister for Trade clearly supporting Irish Whiskey and drinks companies in this difficult time and I hope this will pay dividends during the negotiations,' said Cllr McGloin.
Despite the uncertainty, the distillery in Drumshanbo is operating at full production and is planning a €1.6 million expansion.
Cllr McGloin believes a successful agreement could unlock major opportunities for the Northwest.
'If we can get over this and successfully agree, we could be in a position of a positive outcome.
'We could see dramatic growth and locally, long term strategic growth in the Drumshanbo production facility which could mean more jobs and more opportunities for the county and also for the Northwest,' said Cllr McGloin.
