With President-elect Donald Trump’s announcement of a proposed 25% tariff on goods from Mexico and Canada, many in the beverage alcohol industry are concerned about how they’ll be affected.
Many organizations, including Wine & Spirits Wholesalers of America (WSWA) are speaking out about the proposed tariffs and the threat they pose on businesses.
“WSWA are deeply concerned about President-elect Trump’s announcement of a proposed 25% tariff on goods from Mexico and Canada,” Dina Opici, WSWA chairwoman and president of Opici Family Distributing, said in a statement. “These tariffs pose a significant threat to an industry already grappling with declining volumes and rising costs.”
Tariffs on Beverage Alcohol Imports
While Trump’s proposed tariffs will boost American wine businesses, other spirits categories such as whiskey and tequila may take an unpleasant turn.
“We appreciate President-elect Trump’s goal to protect the American people and U.S. jobs. Our industry has been weighed down by retaliatory tariffs as part of unrelated trade disputes since 2018, which crashed our exports harming thousands of distillers and their farmers across the United States,” said Distilled Spirits Council president and CEO Chris Swonger, in a press release. “We are now currently facing the threat of a devastating 50% tariff on American whiskey by the EU at the end of March 2025. Imposing a tariff on tequila and Canadian whisky from two of our largest trading partners could kick off more retaliatory tariffs on American spirits to Canada and Mexico.”
Last week, WSWA hosted a webinar “Navigating Trade Challenges” that addressed the potential economic and market implications of proposed tariffs on imported wine and spirits.
“While these tariffs are designed to protect American industries and jobs, the unique nature of the wine and spirits sector means their unintended consequences could achieve the opposite,” Opici said during the webinar. “Tariffs on imported wine and spirits directly threaten thousands of jobs within the U.S. distribution, retail and hospitality industries, which rely heavily on these products. I urge policymakers to reconsider and recognize the far-reaching impact these tariffs have on American businesses and workers across the supply chain.”
Reciprocal Tariffs From Europe
Brian Rosen, 2x Excited Beverage founder and chairman of InvestBev, predicts the next few weeks until inauguration will be a major export period.
“With European buyers wanting to get containers in out of the tariff setting, the containers need to be on land before the tariffs hit, so it could be a short-term boom for American brands going overseas,” he says.
However, this boom may not last, since Europe will likely institute reciprocal tariffs.
“Tariffs not only jeopardize access to the marketplace but also strain relationships across the supply chain,” executive vice president of portfolio management at Winebow Theo Koebel said during WSWA’s webinar. “It is critical for all industry players—domestic and international—to unite, collaborate with partners and advocate for solutions that support growth, diversification and resilience.”
How American Spirits Brands Can Prepare
While price increases are almost inevitable with exports, Rosen says brands can prepare by solidifying their overseas relationships.
“If you’re an American brand, you need to solidify your overseas relationships,” he says. “You need to contractually lock in your pricing because if you wait for the tariffs to be implemented, you’re going to be underpriced.”
If the tariffs do in fact get implemented, as an American brand, you also need to position yourself as the better, less expensive alternative to European counterparts.
“When consumers see price increases on their core brands, they’re organically going to move over to American products,” Rosen adds. “This too shall pass, but it’s going to be a shit show for a while.”
