Two US spirits trade associations have praised recent trade agreements that will lower tariffs on exports to Cambodia and Malaysia.
Under the deals, announced this week by US Ambassador Jamieson Greer, Cambodia has agreed to immediately eliminate its 35% tariff on US distilled spirits. Malaysia, meanwhile, will phase out tariffs on spirits from the country over nine years, remove its “discriminatory tariff” on distilled spirits and conduct an independent review to finalise a definition for spirit-based ready-to-drink products by the end of 2028.
Both the Distilled Spirits Council of the US (Discus) and the American Whiskey Association (AWA) praised the news, noting also that reciprocal trade negotiations are ongoing with Thailand and Vietnam in the region.
Discus said it was “encouraged by this positive development” and urged the Trump administration “to build on this progress by securing a return to zero-for-zero tariffs on distilled spirits across all markets, most notably with the European Union and the UK.” The organisation added that permanent tariff-free access to key markets is “essential to ensuring the continued growth and vitality of the US spirits industry.”
AWA CEO Michael Bilello added: “These new agreements mark meaningful progress for American whiskey producers and for the broader US spirits industry.
“By expanding market access and reducing tariffs in South-East Asia, the administration is opening the door for one of America’s most iconic exports – American whiskey – to reach millions of new consumers.”
Earlier this month, Discus warned that the current weakness in exports for its members risks putting US distillers under “mounting pressure and financial strain”. Exports in the three months to the end of June fell by 9% in value terms, while shipments to Canada nosedived 85% to US$9.6m and the EU was also down, by 12% to $290.3m.
