The Toasts Not Tariffs Coalition, representing 52 associations across the US alcohol industry, has urged President Donald Trump to exclude spirits and wine from any new or universal tariffs, warning of potentially severe economic consequences.
In a letter to the president, the coalition emphasized that the wine and spirits sector generates over $476 billion in annual economic activity and supports more than 3.5 million US jobs across all states.
The letter comes as Donald Trump announces his intentions to impose tariffs on the EU, having already imposed tariffs on Canada, Mexico, and China last week. Trump has levied 25% taxes on Canadian and Mexican imports, plus an additional 10% on Chinese goods, and 10% on Canadian energy.
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READ THE STORYIndustry Concerns Mount Over Tariffs
Previous tariffs have already demonstrated a significant impact on the industry. During the 2018-2021 period, when the EU and UK imposed tariffs related to steel, aluminum, and aircraft disputes, American whiskey exports dropped by 18%, while total spirits exports declined by 12%.
Canadian Threats Add Pressure
Adding to the industry’s concerns, the coalition revealed that premiers of Canada’s three largest provinces have threatened to remove all US-produced alcohol from their markets if targeted by new US tariffs.
“Import tariffs on wine and spirits will erode access to our largest export markets, halt investments in the U.S., prevent U.S. job growth and limit our industry’s ability to capture new markets,” the letter said.
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Agricultural Impact
“Zero or low tariffs for wine and spirits are essential to U.S. producers’ export success in foreign markets,” the coalition stated in their letter, noting that nearly 85% of US spirits exports go to countries that have eliminated tariffs on all US spirits.
Toasts Not Tariffs stressed that the U.S. alcoholic beverage market has become increasingly difficult to navigate, saying that imposing new tariffs on imported wine and spirits “would harm, not help, American businesses, threatening the livelihood of tipped workers and small businesses across the country.”
