Distilled Spirits Council President and CEO Chris Swonger Statement in Response to President Trump’s August 1 Deadline for a 30% Tariff on the EU and Mexico, and 35% Tariff on Canada
“We recognize that President Trump is working to secure fair and reciprocal trade and remain hopeful that negotiations between the U.S., EU, Mexico and Canada will result in a permanent return to the long standing zero-for-zero tariffs for spirits trade between these major trading partners.
“Many spirits products are recognized as ‘distinctive products’ by the U.S., EU, Canada and Mexico and can only be made in their designated countries. As a result, the production of these spirits products, including Bourbon, Tennessee Whiskey, Tequila, Canadian Whisky, Cognac and Irish Whiskey, cannot simply be moved to another country or region.
“A permanent return to zero-for zero tariffs for distilled spirits products will greatly benefit American distilleries, farmers and restaurants at a time when the hospitality industry is facing a slowdown in the United States.”
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Background:
- Currently, U.S. tariffs are suspended on imports from Mexico and Canada that comply with the U.S.-Canada-Mexico Agreement (USMCA). Spirits produced in Canada, Mexico and the United States are all covered under USMCA.
- In 2024, total U.S. spirits exports achieved a record $2.4 billion, up nearly 10% compared to 2023 due to the suspension of the EU tariffs on American Whiskey. The top five markets for U.S. spirits in 2024 were: 1) European Union ($1.2 billion); 2) Canada ($221 million); 3) United Kingdom ($137 million); 4) Australia ($131 million); and 5) Mexico ($126 million).
- In 2024, the U.S. imported $5.2 billion worth of Tequila and $93 million worth of Mezcal from Mexico.
- In 2024, the U.S. imported $3.4 billion worth of EU spirits. Imports of Irish Whiskey (excluding Northern Ireland) reached $135 million, and imports of Cognac reached $1.15 billion in 2024.
- In 2024, the U.S. imported $621 million worth of Canadian spirits.
