The Distilled Spirits Council of the United States (DISCUS), will engage in talks with Trump administration officials in an attempt to negotiate around import and export tariffs planned for 2025.
The spirits industry claims it qualifies for an exemption because many spirits are subject to “denomination of origin” laws. These laws require that products be produced in a particular country or region and cannot be made within the United States.
Scotch whisky, Irish whiskey, tequila, mezcal, and cognac must be produced in specific regions outside the United States.
The global spirit industry has recently slowed down due to inflation and customer cutbacks. The industry fears that further price increases will profoundly impact jobs and businesses.
In an open letter to President-elect Trump, DISCUS spoke out against the tariffs. “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.”
DISCUS concluded their argument by urging global governments to get behind their motion to ensure tariffs are not imposed on spirit products.
By CEO NA Editorial Staff
