Alcohol industry urges tariff exemption

A coalition of 58 associations in the U.S. alcohol and hospitality industries has asked the Office of the U.S. Trade Representative to exempt wine and distilled spirits from current and future tariffs, arguing that new trade barriers would deepen pressure on restaurants, bars, producers and workers already facing high costs and weak consumer demand.

The group, Toasts Not Tariffs, filed formal comments this week in response to Section 301 investigations into foreign industrial overcapacity, a process that could lead to new or expanded tariffs. In its filing, the coalition also urged the administration to pursue fair and reciprocal trade with the European Union and Britain, secure new market-opening agreements and restore permanent access for U.S. wines and spirits across all Canadian provinces.

The coalition said the hospitality sector is still dealing with inflation, high food prices, fragile employment growth and lower consumer confidence. It argued that restaurants, which often operate on thin margins, are especially exposed to higher import costs and trade uncertainty.

More than 3.5 million U.S. jobs are supported by the production, distribution and sale of wine and spirits, according to the coalition, which said those industries generate $476 billion in annual economic activity. Alcohol sales account for 21% of full-service restaurant revenue, it said, making tariffs on wine and spirits a direct threat to hospitality businesses.

The group said U.S. wine and spirits exports have generally benefited from low or zero duties in many overseas markets, allowing American producers to compete abroad. It pointed to Canada as a recent example of how trade disputes can quickly damage sales. After Canada restricted U.S. wine sales, exports of American wine to Canada fell 78%, from $460 million in 2024 to $103 million. The coalition said Canada accounted for 81% of the decline in total U.S. wine exports during that period. U.S. spirits exports to Canada also fell 63%, from $238 million in 2024 to $88 million in 2025.

The coalition warned that tariffs can trigger retaliation against U.S. exports and hurt farmers, distillers, vintners and hospitality workers across the supply chain. It said many spirits and wines are tied to specific places of origin and cannot simply be moved elsewhere to avoid tariffs, citing Bourbon, Tennessee Whiskey, Cognac and Tequila as examples of products defined by geography and tradition.

The filing comes as the administration weighs trade actions that could affect imported alcohol at a time when restaurants and beverage companies are still trying to recover from pandemic-era disruptions and adapt to slower growth in consumer spending.