The 15% tariff on Irish drinks exports to the US is a "disappointment" that will put the sector at a disadvantage, according to one of the country's leading distillers.
The Framework Trade Agreement between the EU and US, published yesterday, has provided clarity around the trade deal US President Donald Trump and European Commission President Ursula Von Der Leyen shook hands on in Scotland almost a month ago.
Part of that is a confirmation that beer, wine and spirits exports will be subject to the 15% tariff - despite attempts by Europe to secure an exemption.
Pat Rigney, co-founder of The Shed Distillery in Drumshanbo, Co Leitrim said the 15% rate represents a major challenge to Irish producers.
"[It] puts us at a disadvantage, particularly in relation to US spirits, Mexican spirits and Canadian spirits, because there's no tariff on those," he said. "If you're importing a new brand and you have to pay a tariff up-front, you're going to think twice before you take it into the market - in terms of it has to prove itself."
He said the previous zero-tariff arrangement had been good for producers on both sides of the Atlantic - and he hoped further negotiations might see that return.
"It's another obstacle that we just don't need - we've been operating under zero tariffs on both sides of the pond for 30 years now and it's been hugely successful for both American spirits and spirits being shipped across," he said. "We need to get back to that as quickly as possible."
Despite the challenge posed by tariffs, The Shed Distillery has mounted a multi-million dollar campaign to try to grow its brand further in the US - including buying ad space on New York's Times Square.
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Mr Rigney said he was confident the current trade tensions would shift eventually, and the challenges it poses may open up space in the market in the short term.
"There are pockets of growth still in the US, depending on the category - we're in a growth phase in the US and we're doubling down on the market," he said.
However he also conceded that they would have to raise prices in the US in order to handle the impact of the 15% tariff rate.
"We will have to take a price increase, but that means we will have to be better at everything we do, we'll have to support the brand more in the marketplace," he said. "Whether it's the full 15% or not, we've yet to decide."
But many other firms - in the drinks sector and beyond - will likely find themselves in a similar situation in the coming months. That means bad news for consumers there.
"I'm just back from the US - at this stage, just right across the board, you're not seeing tariffs yet really appearing on the retail shelf - whether it's alcohol or whether it's anything else," Mr Rigney said. "But I think now that there's more certainty prices will go up.
"I think these tariffs will start to really appear on the shelf by the end of this year and into early next year as the pipeline runs dry of pre-tariff shipments," he said.
"It's a bit like the calm before the storm," he added.
