DISCUS Is Trying to Boost Spirits Exports. Tariffs Keep Getting In the Way.
The hits just keep coming in the ongoing trade war, with President Trump announcing a new 50 percent tariff on Canadian whisky, beer, wine, and other products on July 20. That import tax, scheduled to start August 19, was described as a “necessary and appropriate” response to the removal of U.S. spirits from the shelves of most Canadian provinces — itself a reaction to the tariffs and threats from the Trump Administration last year — which cut Canadian sales of U.S. alcoholic beverages by 81 percent, according to the White House statement. A few days earlier, new tariffs were also imposed on goods coming from Brazil. And on July 24, the administration once again hit more than 60 countries with an array of new tariffs.
That’s bad news for U.S. producers who are hoping that foreign sales might make up for decreasing consumption in the States and the loss of sales in Canada, as well as a big reduction in exports to the EU over the last year and a half. Around the world, tariff-affected countries are countering with protective moves of their own, cutting off many options. And in the middle of that maelstrom, the Distilled Spirits Council of the United States (DISCUS) is actively trying to increase U.S. spirits exports, funded in part by a $900,000 grant from the U.S. Department of Agriculture’s American First Trade Promotion Program.
Robert Maron, senior vice president for international trade policy and market access at DISCUS, highlights the importance of free and fair trade with the U.S.’s largest trading partners, including the EU, Mexico, and Canada. But those aren’t the only places where U.S. drink brands can find new customers.
“We see a lot of opportunities and are continuing to work with the administration to open the Brazils, the Indias, and the Vietnams of the world for our industry,” he says. “There are other opportunities around the world.”
With tariffs and trade wars increasing, that might look like a daunting task. However, experts in those markets note increasing customer interest and rising sales across the whiskey category. The challenges include consumer awareness and preconceptions about American whiskey, as well as negotiating and writing new international trade agreements.
New Trade Deals
With products from Brazil facing the new 25 percent tariff announced in July, that country might be a tough sell for U.S. exports in the near future. But one place where the administration has scored a new trade deal is nearby Argentina, which signed a free trade agreement with the Trump Administration earlier this year.
That doesn’t mean that the third-most populous country in South America is about to switch from Fernet to Old Fitzgerald anytime soon, according to Vero Tomagheli, a whiskey educator located in Buenos Aires.
“Here in Argentina there is a very limited market for American whiskey,” she says. That might be due to how local importers have long marketed American spirits by focusing on younger audiences and cocktails, rather than serving drinks neat. “The common people think, ‘If you have to mix it, it probably isn’t a good product.’”
“We continue to engage with the administration and highlight the competitive disadvantage we could be at if the U.S. isn’t able to secure similar tariff reductions.”
And while the biggest brands from Kentucky and Tennessee have a local presence, they don’t really help the category.
“The brands that are present in the Argentine market are very few and are sold in supermarkets, another factor that suggests medium- or low quality,” she says. It’s quite rare to find high-end bourbon, Tennessee whiskey, or American Single Malt in Argentina, she says, and if so, it’s often listed at sky-high prices.
That might matter in some countries — or venues — more than others. In India, dauntingly high tariffs on U.S. spirits have greatly limited what’s traditionally been imported, according to Melwyn Kuriakose, bar manager at Four Seasons Bengaluru. But that doesn’t mean cost is a major factor at venues like Copitas, the hotel’s award-winning cocktail bar, or The Collection, its whiskey lounge.
“We find that tariff-driven price points rarely deter true enthusiasts,” he says. “Guests who appreciate exceptional spirits continue to actively seek out high-caliber bourbons.”
In luxury hotel bars, that might have been true even before the Indian government reduced its massive 150 percent tariff on U.S. spirits down to “just” 100 percent last year. But further reductions on tariffs could make a much wider assortment of U.S. products available.
“Lower tariffs would significantly broaden availability, allowing us to introduce small-batch, single-barrel, and boutique craft distilleries to India,” he says.
Consumers there are already getting used to cheaper imports, though those bottles are coming from countries that compete with the U.S. This year, two new trade agreements brought India’s tariff on spirits from the EU and the U.K. — meaning Irish whiskey and Scotch — down to 40 percent and 75 percent, respectively, with the latter scheduled to reduce in phases to end at the same 40 percent within a decade. Those lower rates could make a big difference in terms of sales, especially in light of India’s massive consumer base, with the country of 1.4 billion ranking as the world’s largest consumer of whiskey by volume, and second largest by value — a situation that DISCUS knows very well.
“We continue to engage with the administration and highlight the competitive disadvantage we could be at if the U.S. isn’t able to secure similar tariff reductions,” Maron says.
In India, DISCUS is working to improve awareness about U.S. products, hiring consultants to perform staff training and conduct consumer education programs.
“We do a lot of category promotion in markets where maybe there’s not a real understanding of what American whiskey is, what makes bourbon unique, what makes Tennessee whiskey unique. Doing that type of education for the trade and the media is important as we grow the category around the world.”
Those efforts — and bourbon’s own renown — might be starting to pay off. Scotch has traditionally dominated consumer preferences in India, Kuriakose says, though there’s been “a noticeable shift in perspective” in recent years.
“Connoisseurs in India are increasingly eager to explore the distinct complexity, oak character, and warmth that artisanal U.S. whiskies offer,” he says. The category remains somewhat novel, meaning there’s a lot of room for growth, especially if consumers are able to learn more about where these drinks are coming from. “There is an exciting opportunity for storytelling — demystifying mash bills, aging environments, and the subtle nuances between traditional bourbon and Tennessee whiskey.”
Building Awareness in Asia
Vietnam might not be widely recognized as a cocktail hotspot, but the country’s mixed-drinks scene is booming, and love for whiskey plays a major role. Founded by former Londoner Rich McDonough in the northern city of Hanoi in early 2025, Workshop14 won an international award for its modernist, high-concept cocktails within just six months. Similar accolades have gone to bars like Stir and The Enigma Mansion in the country’s southern capital, Ho Chi Minh City.
The country is currently “awash” in upmarket Scotch, McDonough says, both behind the bar and in private hands, citing examples like the Macallan 1926 60 Year Old — valued at $10 million — owned by collector Nguyen Dinh Tuan Viet, whose other treasures include the world’s largest Scotch bottle, a 311-liter vessel of 32-year-old Macallan that stands almost six feet tall.
“We see a lot of opportunities and are continuing to work with the administration to open the Brazils, the Indias, and the Vietnams of the world for our industry. There are other opportunities around the world.”
“There’s a lot of huge whisky collectors here,” he continues. “It’s a big market for Scotch producers for their high-end stuff.”
Those headline-grabbing collectibles reflect — and likely reinforce — the esteem in which Scotch is held in Vietnam. Bourbon doesn’t have quite the same status, which in turn means that importers haven’t focused on it.
“It doesn’t have the luxury allure of Scotch or Japanese whisky,” McDonough says. “Pernod [Ricard] doesn’t even have a bourbon in their portfolio for Vietnam.”
Consumers in the country are certainly aware of American whiskey, he says, with those bottles seen as appropriate for Old Fashioneds, Manhattans, and other classic recipes. Beyond that, they’re not particularly well-considered.
That might change with greater education, as in other countries. Next month, he notes, a brand ambassador from one of the big Kentucky bourbon producers is scheduled to pass through town.
“They’re trying to educate bartenders and spread the gospel, but I think that’s the first time I’ve seen that happening,” he says.
That kind of outreach could make a difference in how U.S. whiskey is seen — and consumed — in Vietnam. Another helpful step would be a reduction of the country’s 45 percent tariff on spirits from the U.S., which Maron calls “an immediate hurdle and challenge, especially for the smaller brands.”
Under the “framework for an agreement” signed by Vietnam and the United States last fall, Vietnam is supposed to remove its tariffs on “almost all goods” from the U.S., but it’s not clear when that memorandum will lead to a functioning trade deal.
And while a deal with Vietnam or India certainly could help U.S. producers, there’s a long way to go to make up for the $581 million loss in exports to Canada over the last year, to say nothing of the 35 percent drop in the sales of American whiskey in the EU.
“It goes to show how important fair and reciprocable trade is for our industry,” Maron says.
The article DISCUS Is Trying to Boost Spirits Exports. Tariffs Keep Getting In the Way. appeared first on VinePair.