Ireland’s whiskey industry is reeling as a 15% U.S. tariff on most EU exports, agreed between U.S. President Donald Trump and European Commission President Ursula von der Leyen, compounds a downturn driven by oversupply, falling U.S. demand, and sharply rising costs. The impact is being felt across the sector, from small independents to giants such as Diageo and Pernod Ricard. The most prominent casualty so far is the Killarney Brewing & Distilling Co., once Ireland’s largest independently owned beer and whiskey producer, which closed last month with the loss of about 50 jobs.
Other setbacks include Diageo’s extended pause at its Roe & Co. distillery in Dublin and Pernod Ricard’s earlier temporary suspension of operations at Midleton, which has pushed the opening of its planned new distillery back to 2027. The Dublin Liberties Distillery has been closed since May, while the Waterford Whisky distillery and visitor center remain shut and for sale.
According to Eoin Ó Catháin of the Irish Whiskey Association, representing 98% of producers, tariff concerns have eroded confidence, particularly among SMEs. With around 90% of Irish whiskey exported and the U.S. as its largest market, the sector is especially exposed. While the EU–U.S. deal caps tariffs at 15%, ongoing negotiations leave uncertainty over whether spirits will be exempted.
The Irish whiskey boom saw the number of distilleries grow from four in 2010 to over 50 by 2024, with U.S. exports peaking in 2022 at double the volume of a decade earlier. However, shipments to the U.S. fell by about one-third in 2024, while production costs for energy, glass, packaging, and labor surged. Analysts warn the tariffs could push whiskey prices up by as much as 6%, forcing producers to either raise prices or cut costs to protect fragile demand.
