Some Irish whiskey distilleries have raised concerns that the ongoing discussions around a tariff war are having an effect on business.

The Irish Farmers Journalqueried whiskey distillers and stakeholders across the island of Ireland about the outlook for the industry in the current political climate and the importance of Irish grain to their product.

Of the respondents, 56% said they have been or will be affected by the discussions around tariffs, and of those, 40% said the effects would only be felt in the short term.

A spokesperson for Ahascragh Distillery in Co Galway said: “Right now we have a 10% tariff which is manageable. However, there is a lot of uncertainty out there which is delaying closure of new deals and shipments. We won’t know the true impact until we see the final level of tariff.”

However, Old Carrick Mill in Co Monaghan said other trade agreements are of bigger concern.

“At this time the talk of tariffs between the US and EU has not affected our business but the UK and India trade deal will have an effect as they will see a much more competitive advantage to enter this market.”

US President Donald Trump has threatened 50% tariffs on imports from the EU, which he has delayed until 9 July.

The US is Ireland’s biggest whiskey importer and so the industry would be particularly hit by the imposition of tariffs with Ireland sending 40% of its exports or €450m worth of Irish whiskey to the US last year.

Eoin Ó Catháin, Irish Whiskey Association director, said the 10% tariff is costing exporters “thousands with every shipment”, with many choosing to absorb the costs themselves.

Uncertainty

“The uncertainty around new approaches to trade policy in our sector’s biggest market is a cause of concern for Irish whiskey producers. This has led to short-term actions to protect business, including pauses in production.”

However, a spokesperson for Killowen Distillery in Co Down said the discussions around tariffs are bad for business.

“There is too much talk about the tariffs, so far, they have created uncertainty and that impacts confidence from some overseas partners, I find it’s the over emphasis on this area that’s feeding into it more.

“While tariffs are a pain, the USA ones have also resulted in newly opened doors with Toronto and New Brunswick in Canada for instance.”

Only nine distillers responded out of the 45 asked. Of them, 89% said they used Irish grain exclusively.

A spokesperson for Clonakilty Distillery in Co Cork said this preference is from both a community and sustainability perspective.

“As the whiskey industry grows, we would hope that the Irish grain sector will continue to grow in tandem.”

Rademon Estate Distillery in Co Down added: “Our policy is to use 100% Irish grain, where possible. However, that grain has to meet the required quality standards and be available at a fair price that makes it viable to do so.

“That’s challenging at times, especially as the cost of grains has almost doubled over the last 10 years since we started production.”