Alcohol Industry Expresses Concerns About Tariffs
As the Trump Administration enacts sweeping tariffs against trading partners worldwide, the alcohol industry has again sounded the alarm about potential financial fallout.
The Wine & Spirits Wholesalers of America (WSWA) today released the following statement:
“WSWA is concerned about the impact of newly announced tariffs and their potential effects on American businesses, industry partners, and consumers. While our industry remains resilient, these trade policies create significant uncertainty in supply chains and pricing, affecting the entire beverage alcohol industry and the broader hospitality sector. Ultimately, consumers will bear the brunt of these changes, facing higher prices and reduced access to the diverse selection of products they expect.
WSWA strongly urges U.S. officials and their counterparts abroad to engage in meaningful negotiations that result in fair and reciprocal trade practices. Tariffs and trade barriers disrupt long-established relationships and hinder economic growth for businesses on both sides of the Atlantic. We also call on our international partners to encourage their governments to come to the negotiating table. By working toward reduced trade barriers, reciprocal actions can be taken by the U.S., in line with the commitments made by President Trump. Our shared goal must be to restore the stable and balanced trade environment that previously existed for wine and spirits.
WSWA remains committed to advocating for policies that support economic growth, job creation, and consumer choice in the U.S. wine and spirits marketplace. We will continue to work with policymakers to ensure the stability and prosperity of our industry, while maintaining access to the world-class products that American consumers enjoy.”
Distilled Spirits Council President and CEO Chris Swonger Statement issued a similar statement of concern:
“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,” Swonger said in a release.
“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.”
Swonger further pointed out that 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.
Feature photo by Edoardo Cuoghi on Unsplash.
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