The Irish Whiskey Association (IWA) has welcomed the Government’s recent decision to defer the introduction of complex new alcohol labelling rules.

The Association says the move comes at a critical moment for the Irish whiskey industry, which is currently grappling with significant international trade uncertainties.

“This reprieve comes at a critical time for whiskey distillers who are already facing intense pressure,” said a spokesperson for the IWA.

“The proposed labelling legislation would have significantly increased packaging and labelling costs for our members, in some cases by over 35%.”

The announcement follows rising tensions over trade between the European Union and the United States.

The IWA had previously warned that a proposed 30% blanket tariff on EU goods, set to take effect from August 1st and announced by US President Donald Trump, would be “devastating” for the Irish whiskey industry and the broader drinks sector.

In response, the IWA has urged all parties to avoid escalation and to protect the drinks industry from further disruption.

“We are disappointed to see spirits included in the EU retaliatory measures under discussion, as this would unnecessarily escalate matters for this sensitive sector,” the Association stated.

The IWA is calling on:

• Both sides to continue negotiating to remove trade barriers;
• The European Commission to exclude US whiskey, bourbon, and other drinks products from retaliation lists;
• The Irish Government to provide targeted support to the Irish whiskey industry, including reducing production costs, easing market access, and building sustainable financing solutions for emerging businesses.

Despite current headwinds, the IWA remains optimistic and committed to cooperation at both national and EU levels.

“We thank the Government for its continued support in what is a tumultuous time for the sector and remain committed to working with all institutions, both here and in Europe, on finding a solution to these ongoing trade issues.”

The Irish whiskey sector has seen exponential growth over the past 20 years, contributing significantly to job creation, economic development, and trade ties across the Atlantic.

Ensuring its continued success, the IWA says, will require close collaboration and swift, pragmatic policymaking.