Distilled Spirits Council President and CEO Chris Swonger Statement in Response to President Trump’s Tariff Announcement
“We urge President Trump to liberate the U.S. spirits sector from these tariff disputes by negotiating deals that get us back to fair and reciprocal zero-for-zero tariffs for spirits products.
“Many spirits products are recognized as ‘distinctive products’ by the U.S. and our trading partners and can only be made in their designated countries. As a result, the production of these spirits products, such as Bourbon, Tennessee Whiskey, Cognac, Scotch and Irish Whiskey, cannot simply be moved to another country or region.
“The U.S. spirits sector has been the model of success for fair and reciprocal trade for decades. During the time that we had zero-for-zero tariffs with 51 countries, our industry flourished, benefitting U.S. distillers, farmers and the wider hospitality industry.
“A return to zero-for-zero tariffs with our key trading partners will enable the 3,100 distillers across the United States to partake in the limitless growth opportunities that exporting has to offer.
“We recognize that President Trump is working to secure fair and reciprocal trade and stand ready to work with the administration to untangle the spirits industry from the recent trade disputes so we can resume zero-for-zero trade with our major trading partners.”
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Background:
- Nearly 86% of U.S. spirits exports ($2.1 billion) go to countries that eliminated tariffs on U.S. spirits. In exchange, the U.S. opened its market for imported spirits by eliminating tariffs. As a result, approximately 98% of spirits imported into the U.S. originate from countries that have eliminated tariffs on U.S. spirits exports.
- Currently, Canada is imposing a 25% retaliatory tariff on all American spirits, and U.S. spirits have been removed from retail establishments, bars and restaurants across Canada by the provincial spirits distribution and retail monopolies.
- The U.S.-EU spirits sector had zero-for-zero tariffs from 1997 up until the EU imposed a 25%retaliatory tariff on American Whiskey in 2018. Due to the EU’s retaliatory tariff, American Whiskey exports to the EU, the largest American Whiskey export market, plunged 20%, from $552 million to $440 million (2018-2021). During the last three years that the tariffs have been suspended, American Whiskey exports to the EU surged nearly 60%, climbing from $439 million in 2021 to $699 million in 2024.
- Distilled spirits products are key economic drivers for the U.S. hospitality industry. Sales of alcohol in full-service restaurants account for more than 20% of total sales.
- The U.S. spirits sector supports approximately 1.7 million jobs across production, distribution, hospitality and retail. Our industry has a deep connection to agriculture and sourced more than 2.8 billion pounds of grains from American farmers in 2023.