Drinks Industry Hopes For Tariff Carveout

Drinks industry operators continue to hold out hope for an exemption from U.S. tariffs on products from Canada and Mexico, especially after yesterday’s news that the auto industry has received a one-month reprieve from the levies. The White House was said to be open to more potential exemptions from the tariffs on its North America trade partners, but is adamant that none will be granted on the sweeping “reciprocal” tariffs on other countries that it intends to levy on April 2.

DISCUS said its economic analysis showed that a 25% tariff on Mexican and Canadian spirits would cost the U.S. more than 30,000 jobs and disrupt a nearly $6 billion trade for U.S. importers bringing in Tequila and Canadian spirits.

The Toasts Not Tariffs coalition—made up of 52 groups across the drinks industry, including DISCUS, WSWA, and the National Restaurant Association, among others—also issued a statement pointing to the harms the Canada and Mexico tariffs will cause and their lack of benefit for American workers.

“Many wine and spirits categories, such as Tequila and Bourbon, are designated as distinctive products that can only be produced in certain geographical regions around the world,” the group said. “As a result, the production of these products cannot simply be moved to another country or region.” The move also harms the export trade for U.S. producers, whose products are being pulled from shelves in Canadian provinces.—Shane English

Tagged : Tariffs

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