DISCUS President & CEO Chris Swonger Statement on President-Elect Trump’s Proposed Tariffs on Mexico and Canada
We appreciate President-elect Trump’s goal to protect the American people and U.S. jobs. Our industry has been weighed down by retaliatory tariffs as part of unrelated trade disputes since 2018, which crashed our exports harming thousands of distillers and their farmers across the United States. We are now currently facing the threat of a devastating 50% tariff on American whiskey by the EU at the end of March 2025. Imposing a tariff on Tequila and Canadian Whisky from two of our largest trading partners could kick off more retaliatory tariffs on American spirits to Canada and Mexico.
Under the United States-Mexico-Canada Agreement (USMCA), Tequila and Canadian Whisky are designated as distinctive products, similar to Bourbon, where they can only be made in their country of origin. Slapping a tariff on Tequila and Canadian Whisky will not boost American jobs simply because they cannot be produced in the United States.
The U.S. spirits sector continues to experience a slowdown. At the end of the day, tariffs on spirits products from our neighbors to the north and south are going to hurt U.S. consumers and lead to job losses across the U.S. hospitality industry just as these businesses continue their long recovery from the pandemic.
As President-elect Trump comes into office, we urge all of governments to work together to reach an agreement that ensures tariffs are not imposed on spirits products.
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Background Data:
Mexico
- In 2023, the U.S. imported $4.6 billion worth of tequila and $108 million worth of mezcal from Mexico.
- In 2023, Tequila/Mezcal supplier sales in the U.S. were up 7.9% totaling $6.5 billion.
- In 2023, Mexico ranked as the third-largest export market for U.S. distilled spirits and reached $139 million
Canada:
- In 2023, the U.S. imported $202.5 million worth of whiskey from Canada.
- In 2023, the U.S. imported $537 million worth of Canadian spirits.
- In 2023, Canadian Whisky supplier sales in the U.S. were down 5.9% totaling $2.3 billion.
- In 2023, Canada ranked as the second largest export market for American spirits and exports reached $255 million.
