American distillers push to end tariffs on spirits amidst trade negotiations

In March 2025, American distillers faced significant challenges as Canada and Mexico engaged in trade talks with the United States. The U.S. government, under President Donald Trump, imposed a 15% tariff on many imports from the European Union, yet distilled spirits were exempt. The hope among American distillers is that recent trade discussions will lead to favorable agreements that might restore previously beneficial trade conditions, particularly regarding tariffs on alcoholic beverages. Chris Swonger, president and CEO of the Distilled Spirits Council of the United States (DISCUS), emphasized that the spirits industry thrived under a 'zero for zero' tariff structure. However, Canadian provinces retaliated against a 25% tariff on imports from the U.S. by delisting American liquor from their stores earlier that year. Consequently, Canadian sales of spirits dropped dramatically, leading to an estimated loss of $500 million in revenue as they replaced American brands with lower-margin alternatives. This shift has considerably affected the Canadian spirits sector’s profitability. Uncertainty due to these tariffs has been particularly frustrating for American distillers. Heath Clark, Chief Operating Officer of the Tennessee Distilling Group, noted that shipments intended for Canada and the European Union were delayed, leaving thousands of bottled products stuck in warehouses. This backlog creates serious challenges for production planning, especially with fluctuating grain supply and the difficulty in adapting to the inconsistent nature of tariff changes. With Trump set to revisit international discussions, there is a pressing hope that a new agreement could benefit their industry. Overall, American distillers remain cautiously optimistic about future trade negotiations. They believe that establishing consistent and supportive tariff policies is essential not just for their survival but for the growth of the entire spirits industry.