USA | The distilled spirits market across the United States said it will greatly benefit from new tariffs on the EU, Mexico and Canada.
Distilled Spirits Council President and CEO Chris Swonger has issued a statement in response to President Trump’s August 1 deadline for a 30 percent tariff on the EU and Mexico, and 35 percent tariff on Canada.
“We recognise that President Trump is working to secure fair and reciprocal trade and remain hopeful that negotiations between the U.S., EU, Mexico and Canada will result in a permanent return to the long-standing zero-for-zero tariffs for spirits trade between these major trading partners,” said Swonger.
“Many spirits products are recognised as ‘distinctive products’ by the U.S., EU, Canada and Mexico and can only be made in their designated countries. As a result, the production of these spirits products, including Bourbon, Tennessee Whiskey, Tequila, Canadian Whisky, Cognac and Irish Whiskey, cannot simply be moved to another country or region.”
Swonger said that a permanent return to zero-for-zero tariffs for distilled spirits products will greatly benefit American distilleries, farmers and restaurants at a time when the hospitality industry is facing a slowdown in the United States.
Currently, U.S. tariffs are suspended on imports from Mexico and Canada that comply with the U.S.-Canada-Mexico Agreement (USMCA). Spirits produced in Canada, Mexico and the United States are all covered under USMCA.
In 2024, total U.S. spirits exports achieved a record USD 2.4 billion, up nearly 10 percent compared to 2023 due to the suspension of the EU tariffs on American Whiskey. The top five markets for U.S. spirits in 2024 were the European Union (USD 1.2 billion), Canada (USD 221 million), the United Kingdom (USD 137 million), Australia (USD 131 million), and Mexico (USD 126 million).
The United States imported USD 5.2 billion worth of Tequila and USD 93 million worth of Mezcal from Mexico in 2024. The United States also imported USD 3.4 billion worth of EU spirits. Imports of Irish Whiskey (excluding Northern Ireland) reached USD 135 million, and imports of Cognac reached USD 1.15 billion in 2024. In total, USD 621 million worth of Canadian spirits were also imported in 2024.
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