President-elect Donald Trump threatened to impose sweeping tariffs on Mexico and Canada immediately after he takes office next month. The Distilled Spirits Council of the United States (DISCUS) released a statement opposing these tariffs, noting the spirits industry’s difficultues and calling for a more amenable solution to political differences.

According to The Associated Press, Trump has promised a 25% tax on all products imported from Canada and Mexico, along with an additional 10% tariff on products from China. DISCUS President & CEO Chris Swonger believes such tariffs would negatively affect spirits.

“We appreciate President-elect Trump’s goal to protect the American people and U.S. jobs,” Swonger said in a news release. “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.  

“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.”

Swonger expressed concerns about specific spirits products made in Mexico and Canada.

“Under the United States-Mexico-Canada Agreement (USMCA), Tequila and Canadian Whisky are designated as distinctive products, similar to Bourbon, where they can only be made in their country of origin,” Swonger said. “Slapping a tariff on Tequila and Canadian Whisky will not boost American jobs simply because they cannot be produced in the United States.”

Taking a wider view, Swonger believes such tariffs will only further harm a struggling industry.

“The U.S. spirits sector continues to experience a slowdown,” he said. “At the end of the day, tariffs on spirits products from our neighbors to the north and south are going to hurt U.S. consumers and lead to job losses across the U.S. hospitality industry just as these businesses continue their long recovery from the pandemic.

“As President-elect Trump comes into office, we urge all of governments to work together to reach an agreement that ensures tariffs are not imposed on spirits products.”

Read more: DISCUS Opens Registration for 2025 Annual Conference

About the Distilled Spirits Council of the United States

The Distilled Spirits Council is the leading voice and advocate for distilled spirits in the United States. It the leading producers and marketers of distilled spirits, advocating on legislative and public affairs, promoting the spirits industry and encouraging responsible and moderate consumption of distilled spirits as part of a healthy adult lifestyle. For more information, visit https://www.distilledspirits.org/.