Melle (Belgium) (AFP) – Workers at a Belgian brewer stack bottles and kegs sky high as they rush to fill containers for shipment to the United States before President Donald Trump’s eye-watering tariffs on European Union alcohol exports kick in. Trump caused immediate panic within the European drinks industry last week when he threatened to slap 200-percent tariffs on EU alcoholic beverages in retaliation for the bloc’s levies on US-produced whiskey.
One business that would feel the pain of higher US levies is Belgium’s Huyghe Brewery, since the United States makes up nearly 20 percent of its sales. “I can’t cope with 200 percent! That means seeing the price of our beer triple in the United States. It becomes unsellable,” said Alain De Laet, the firm’s CEO. The company, which produces around 30 beers including the well-known Delirium Tremens brand, would be unable to cope with higher prices. “Delirium,” a strong blonde beer with an alcohol content of 8.5 percent, is already one of the most expensive on the shelf.
The brewery went into emergency mode on Thursday evening after Trump’s warning. Since then, the pace of work has continued unabated. Workers pack bottles into boxes surrounded by mountains of barrels in the warehouses in Melle, near Ghent in northwest Belgium, where the family business is headquartered. De Laet and the head of his US subsidiary decided to ship all the stock in Belgium to the United States as soon as possible, he told AFP during a brewery visit. “You have to play it safe,” De Laet said.
The plan is to have up to six months of reserves in the United States, compared to the current three. The assumption is that the levy, if imposed, will not last beyond six months. “Obviously, if it is maintained in the long term, it would mean the end of all exports to the United States. A large piece of the pie would disappear,” De Laet said. Speeding up means filling around 20 containers in the space of a week to be shipped for Baltimore from the Belgian port of Antwerp. Two already left on Friday.
The company is focusing on Delirium’s various ranges, as well as other more fruity varieties that are equally popular with US consumers. “Having our own subsidiary in the United States, with 22 people dealing with sales, is a big advantage over other (alcohol producers). We can ship quickly without waiting for approval from an importer,” De Laet said.
In Belgium, whose beer culture is on UNESCO’s world heritage list, around 400 breweries sell 70 percent of their production for export. The Trump tariff threat looms over the sector. The tit-for-tat levies by the EU and United States came after he imposed 25-percent duties on steel and aluminium imports.
The Huyghe Brewery says 83 percent of its turnover comes from overseas sales, with France its leading market in terms of volume. It is also stepping up US shipments of an alcohol-free version that has just been released on the Belgian market in case it is targeted as well. “You never know with Trump,” De Laet said.
© 2024 AFP
