This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
News
DISCUS issues tariff plea to Trump
The spirits industry will ask incoming US President Trump to exempt producers from his planned import tariff programme after he takes office on 20 January.
In his election campaign Trump promised to protect American industry and force other countries to buy more US products by imposing tariffs of at least 10% on foreign made goods imported into the United States in a bid to eliminate the country’s trade deficit.
The Distilled Spirits Council of the United States, whose members include all the major global producers, says it will argue that spirits should be exempt from the tariffs given so many liquors can only be produced in legally defined countries of regions.
These include Scotch and Irish whiskies, Tequila and Cognac.
“We’d ask for an exemption based on the distinct origin of these products,” Chris Swonger, president and CEO of Discus, told Reuters, adding that while the trade body recognises the intent of Trump’s proposals, spirits are unique because the country or region of production cannot be changed and levies would force up prices to consumers and harm industries such as hospitality.
There are also fears of retaliation if Trump proceeds with the tariffs.
American whiskey and other US-produced spirits themselves face a threat of Brussels imposing 50% tariffs on exports to the European Union from March 2025 unless Washington can resolve a trade dispute related to EU steel and aluminium, Swonger said.
The tariffs are currently suspended until March 2025 to allow time for talks.
Separately Discus has warned that Trump’s pledge to impose large tariffs on Canada and Mexico, which would impact imports of Tequila and Canadian whisky, would also hurt US consumers and lead to job losses in hospitality.
It isn’t just the spirits industry that is braced for tariffs – the wine industry is also readying itself for what might happen.
Related news
US seasonal outlook mixed as industry holds breath on tariffs