The spirits industry plans to lobby for an exemption from any universal tariffs on US imports proposed by the incoming Trump administration, according to a trade body representing leading spirits producers.
President-elect Donald Trump has vowed to impose 10 per cent tariffs on all foreign-made goods imported into the United States, aiming to address the country’s trade deficit.
The Distilled Spirits Council of the United States (DISCUS), which represents major producers such as Pernod Ricard, stated it would engage with Trump administration officials to argue that spirits should be excluded from these tariffs. The Council highlighted the unique geographic requirements for producing many iconic spirits, making them irreplaceable.
“Scotch whisky, Irish whiskey, tequila, and cognac are just a few examples of spirits that must be produced in a specific location outside the United States,” said Chris Swonger, President and CEO of DISCUS. “We’d ask for an exemption based on the distinct origin of these products.”
Swonger added that while the industry acknowledges the objectives of Trump’s trade proposals, applying tariffs to spirits would harm industries reliant on them, such as hospitality. “The country or region of production for these spirits cannot be changed, and levies would adversely impact both our industry and the broader economy,” he noted.
In addition to universal tariffs, American whiskey and other US-made spirits are under threat of 50 per cent tariffs on exports to the European Union beginning in March 2025. These levies stem from an ongoing trade dispute over EU steel and aluminium tariffs.
Currently, the tariffs are suspended until March 2025 to allow for negotiations between the US and the EU. However, without a resolution, American spirits could face significant trade barriers, further complicating the industry’s outlook.
On a separate front, DISCUS warned that Trump’s plans to impose heavy tariffs on imports from China, Canada, and Mexico would directly affect tequila and Canadian whisky imports. “These measures would hurt US consumers and lead to job losses in the hospitality sector,” Swonger said.
