Leitrim's whiskey industry at risk as US-EU tensions rise

Concerns have been raised about the potential impact of an impending trade war, driven by the United States, on the local Shed Distillery in Drumshanbo.

Pat Rigney, founder of the renowned Shed Distillery, warned that escalating tensions between the US and Europe under President Donald Trump pose a threat to a “critical” market for the Irish whiskey industry.

Speaking on Morning Ireland on Friday, March 14, the Leitrim-based entrepreneur highlighted the dire consequences of proposed US tariffs noting, “Whether it is 50 percent, which is for Bourbon, or 200 percent, you are out of the market at that level.”

The comments came as Donald Trump threatens to impose 200 percent tariffs on European wines and other alcoholic products, including Irish whiskey, unless the EU drops its planned tariffs on US whiskey.

Over €800m worth of Irish drink exports to the US are threatened by the US president’s plans.

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Mr. Rigney said that he felt let down by the European Union for bringing the drinks industry into the economic dispute with the US, stating that the US market is critical and constitutes 35 percent of his business.

"It's a steel and aluminium dispute; it has nothing to do with bourbon and our wine and spirits in Europe, so being brought into it by the European Commission is really disappointing," said Mr. Rigney, adding that the issue needs to be addressed "immediately."

The economic dispute between the European trading bloc and the US continues to ramp up as the two enter a tit-for-tat tariff war, which started when the US put 25 percent tariffs on European steel and aluminium imports.

The European Union retaliated by putting plans in place to impose 50 percent tariffs on a number of US products, including whiskey, which prompted the most recent threats from the US.

"We need the European Commission to reverse their proposal on tariffs for bourbon. I mean, this hasn't happened yet, there is time to resolve this," said Mr Rigney, who also owns Drumshanbo Gunpowder Irish Gin, Drumshanbo Single Pot Still Irish Whiskey, and Sausage Tree Pure Irish Vodka.

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