PJ Rigney joins industry leaders in urging return to tariff-free trade as Irish drinks exports feel the strain

As EU-US trade negotiations continue, Leitrim-based distiller PJ Rigney, CEO of The Shed Distillery, has called for the immediate removal of tariffs on spirits, warning that current trade barriers are harming producers, rural communities, and consumers.

“We need to get back to zero for zero,” Rigney said. “We were at zero. We need to go back to zero. So there was zero on us going into the US and zero on US… products, bourbons and so on coming into Europe.”

Tariffs currently sit at 10% for Irish spirits entering the United States, including Irish Whiskey, 95% of which is exported globally, with the US being its biggest market. The Irish Whiskey Association has warned that the added costs are placing pressure on distillers and leaving the sector “uniquely exposed.”

Negotiations are ongoing between the EU and US around a revised trade agreement, with the Council of European Finance Ministers meeting earlier this week to discuss potential actions.

The U.S. has imposed a baseline 10% tariff on imports from the EU, effective since April, which includes a 25% tariff on EU steel, aluminium, and automobiles.

Rigney, who also chairs Drinks Ireland, noted that the uncertainty is making it difficult for producers to plan and grow. “In order to plan and to grow your business, you need some degree of certainty … It hasn't been easy,” he said.

He also highlighted the broader impact of tariffs, beyond just distilleries: “It’s not good for the consumer. It’s also not good for the downstream producers of grain, of pallets, of trucks, of materials. A lot of the distilleries are located in rural Ireland. And it’s not good for the countryside as a whole.”

While The Shed Distillery is managing for now, Rigney acknowledged the challenges facing smaller operations: “We’re doing okay because we worked so hard in the past. We’ve built very strong relationships and a very strong brand. And because we’re a family business, we’re prepared to eat some humble pie in terms of costs in the short term to get through to the medium term. But not everybody’s in the same position.”

Both Drinks Ireland and the Irish Whiskey Association are urging negotiators to prioritise a return to the “zero-for-zero” tariff environment, which they credit with fuelling growth of over 450% in the spirits sector on both sides of the Atlantic.

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