Industry Groups React To Trump Tariff Plans
December 2, 2024As we reported yesterday, President-elect Trump’s threatened 25% tariffs on Mexican and Canadian goods could create a precarious situation in the spirits industry next year, with Tequila, one of the hottest categories in wine and spirits, set to be impacted. Both the Distilled Spirits Council of the United States (DISCUS) and the Wine and Spirits Wholesalers of America (WSWA) have issued statements imploring the president-elect to consider the tariffs’ effects on American businesses.
The tariffs—with which Trump aims to pressure Mexico and Canada to prevent drugs and migrants from crossing into America—endanger one of the growth engines of the spirits market, and, as DISCUS points out, are not likely to create jobs, either. “Tequila and Canadian whisky are designated as distinctive products, similar to Bourbon, where they can only be made in their country of origin,” said DISCUS in a statement. “Slapping a tariff on Tequila and Canadian whisky will not boost American jobs simply because they cannot be produced in the United States.”
WSWA chair and president of Opici Family Distributing Dina Opici echoed DISCUS’s concerns. “The wine and spirits industry is built upon products with unique origins, crafted by producers whose authenticity resonates with consumers. These proposed tariffs would undermine this authenticity by disrupting the critical role imports play in our market,” she said.
Trump’s tariffs, if enacted, risk creating a trade war between the U.S. and its closest neighbors, risking retaliation against U.S. goods. At home, the effects of the tariffs would spread beyond importers and brand-owners, says Opici. “The ripple effects of such tariffs would extend to consumers, retailers, and the recovering hospitality sector—increasing costs at a time when affordability is essential. These broad economic consequences jeopardize the stability and growth of our industry and threaten the livelihoods of those it supports,” she said.
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