Spirits Industry Seeks Tariff Exemption From Trump

The Distilled Spirits Council of the United States has asked the Trump administration to exempt spirits from current and future tariffs, arguing that new trade barriers would hurt exports, distilleries and hospitality jobs at a time when the category is already under pressure.

Chris Swonger, the group’s chief executive, made the case in testimony before the Section 301 Committee after the Office of the United States Trade Representative opened investigations in March into 16 countries that could lead to new tariffs. Swonger said spirits should be left out of any tariff action because the category supports American farmers, distillers, restaurant workers and exporters.

“America’s spirits industry is a powerful economic engine,” Swonger said, noting that it generates more than $250 billion in economic activity, supports about 1.7 million U.S. jobs and uses more than 2.7 billion pounds of grain from American farmers. He said the industry is facing “significant economic headwinds” as sales slow and trade tensions continue.

The council said domestic spirits sales fell 2.2% in 2025, the first annual decline in decades. It also said exports of U.S. spirits dropped nearly 4% last year and that distilleries lost 3.5% of their workforce, or almost 1,000 jobs, between September 2024 and September 2025.

Swonger warned that tariffs on imported spirits could add more strain to bars and restaurants, where alcohol sales are an important source of revenue. He said alcohol accounts for 21% of total revenue at full-service restaurants, making the category central to hospitality profits.

He also argued that tariffs could invite retaliation from trading partners. When the European Union imposed tariffs on American whiskey from 2018 to 2021, U.S. exports fell by 20%, he said. In Canada, the largest export market for U.S. spirits, exports plunged by 63% in 2025 after trade tensions led to American products being removed from provincial markets last March.

Swonger said the temporary suspension of planned European retaliatory tariffs on American spirits is set to expire in August 2026 and has already weighed on exports to the European Union, which fell 3%. He urged the administration not only to keep spirits out of tariff disputes but also to preserve open markets with the European Union and Britain, move quickly on recently agreed trade deals and pursue new agreements in major export markets.

The appeal comes as the spirits industry faces weaker demand at home and uncertainty abroad, with producers warning that further trade friction could deepen job losses and make it harder for American brands to compete overseas.