Distilled Spirits Council President and CEO Chris Swonger Statement in Response to the Imposition of U.S. Tariffs on Mexico and Canada
We greatly appreciate and support President Trump’s leadership to protect the American people and jobs by pursuing fair and reciprocal trade. For decades, this model of fair and reciprocal trade has been in place for spirits between Mexico, Canada and the United States, and the U.S. hospitality industry has flourished as a result.
With spirits products between our three countries already benefitting from fair and reciprocal trade, it makes no sense to have them embroiled in this trade dispute.
Tariffs on spirits products from Canada and Mexico will jeopardize the industry’s contribution to the U.S. economy. The North American spirits sector is highly interconnected and, as a result, tariffs on Tequila and Canadian whisky will harm U.S. spirits companies that have these products in their brand portfolios.
American spirits consumers as well as restaurants and bars across our country that are still struggling following the pandemic closures will shoulder the burden of these tariffs. Tequila, Mezcal and Canadian Whisky are rooted in geographical traditions and local craftsmanship that complement, rather than compete with, U.S. distilled spirits brands.
We are concerned that Canadian stores may take U.S. spirits products off their shelves again and also fear that American whiskey will become entangled in a new round of retaliatory tariffs.
The Distilled Spirits Council, Tequila Chamber and Spirits Canada are committed to working collaboratively with all stakeholders to explore solutions that prevent tariffs on distilled spirits. Maintaining tariff free access for all distilled spirits is crucial for supporting jobs and shared growth across North America.
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Background:
- According to an economic analysis by the Distilled Spirits Council, a 25% tariff on distilled spirits imports from Mexico and Canada could lead to a loss of more than 31,000 U.S. jobs.
- 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 $622 million worth of Canadian spirits.