Toasts Not Tariffs and the Kentucky Distillers’ Association (KDA) are concerned that US president Donald Trump’s 25% tariffs will damage the spirits industry.
On Tuesday 4 March, Trump levied 25% US tariffs on goods from Canada and Mexico, including whisky and Tequila. As a result, Canada’s Liquor Control Board of Ontario (LCBO) has begun pulling American spirits from store shelves.
US trade body Toasts Not Tariffs, a group of 52 associations representing all three tiers of the nation’s alcohol industry, has released a statement urging Trump to lift the tariffs on Mexico and Canada, as they will be harmful to the spirits industries not only abroad but in the US as well.
“We commend the administration’s objectives to protect the American people and support jobs in the United States, however, we are concerned these tariffs will not contribute to that effort,” the statement reads.
“American wines and spirits have benefitted from fair and reciprocal trade with Canada and Mexico. These US tariffs on Mexico and Canada will result in great harm to US companies and employees throughout the wine and spirits supply chain, from restaurants, bars and retail outlets, to shippers and importers/exporters of spirits and wine products.”
The KDA has likewise voiced opposition to the tariffs in a statement released by president Eric Gregory, who underscores the economic impact Bourbon has had on the state, generating US$9 billion as an industry.
“Hard-working Americans – corn farmers, truckers, distillery workers, barrel makers, bartenders, servers and the communities and businesses built around Kentucky Bourbon – will suffer,” Gregory warned. “ Bourbon jobs are American jobs, and we grow Bourbon jobs by opening markets across the globe.”
According to a report by the Distilled Spirits Council of the US (Discus), Canada was the second leading export market for US distilled spirits in 2023 at US$262 million. For American whiskey, Canada was the fifth-largest market, at US$76m in exports.
Both statements note that Bourbon, Canadian whisky and Tequila production cannot be moved as they are geographically bound to a specific country or region. For many producers, these tariffs add to preexisting market factors such as inflation, overstocking, and shifts in spending, with international markets a much-needed avenue for growth.
“Sales of wine and spirits in the US have slowed in recent years, and restaurants in cities across the country continue to try to stabilise post-Covid. Hitting wine and spirits with tariffs will further stall their recovery and hurt US consumers,” the Toasts Not Tariffs statement said.
Both trade bodies vowed to continue to work in opposition to the tariffs, with Gregory saying the KDA will remind leaders of the impact the Bourbon industry has on American jobs.
“Kentucky Bourbon brings people together, and we hope it can be a uniting force in this situation,” he said.
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Author: Ted Simmons
