Spirits Industry Fights Back Against Looming U.S. Tariffs

The spirits industry seeks exemption from impending tariffs proposed by the Trump administration. DISCUS, representing top producers, plans to advocate for this consideration, emphasizing the irreversible provenance of many spirits. They warn that tariffs could harm the industry, notably impacting hospitality and potentially leading to EU trade disputes.

The spirits industry is bracing for a potential setback as the incoming Trump administration contemplates imposing universal tariffs on U.S. imports. According to DISCUS, the trade body representing leading spirits makers, they will lobby for an exemption, stressing the unique origins of specific spirits.

President-elect Donald Trump has proposed a sweeping 10% tariff on foreign goods to tackle the U.S. trade deficit. DISCUS, which includes major producers like Pernod Ricard, argues that tariffs on spirits such as scotch, tequila, and cognac are unfair, as these beverages are tied to specific regions. Chris Swonger of DISCUS highlighted the potential adverse effects on hospitality.

Beyond broad tariffs, the threat of higher tariffs on American whiskey exports to the EU looms if no resolution is reached in existing trade disputes over steel and aluminum. DISCUS also cautions against large tariffs on nations like China, Canada, and Mexico, which could affect imports and harm the U.S. hospitality sector.

(With inputs from agencies.)