A plethora of wine and spirits trade organisations have reacted to President Donald Trump’s latest tariff announcement with deep concern.
Yesterday (2 April), the US President confirmed the implementation of a baseline levy of 10% to every country exporting to the US from 5 April, while the EU will be hit by a 20% tariff on goods shipped across the Atlantic. Meanwhile, other countries in Trump’s “worst offenders” category are set to face significantly harsher tariffs.
The UK managed to get off relatively lightly, being on the receiving end of a 10% hit. In response, a spokesperson for the Scotch Whisky Association said: “The industry is disappointed that scotch whisky could be impacted by these tariffs. We welcome the intensive efforts by the UK government to reach a deal with the US administration, and we continue to support this measured and pragmatic approach towards a mutually beneficial resolution.”
Distilled Spirits Council of the US (Discus) CEO Chris Swonger issued a statement following the ‘liberation day’ announcement, trying to urge the President to “liberate the US spirits sector from these tariff disputes”.
He added: “Many spirits products are recognised as ‘distinctive products’ by the US and our trading partners and can only be made in their designated countries. As a result, the production of these spirits products, such as bourbon, Tennessee whiskey, cognac, scotch and Irish whiskey, cannot simply be moved to another country or region.”
The trade association head claimed that a return to “zero-for-zero tariffs” is the desirable outcome, which would “enable the 3,100 distillers across the US to partake in the limitless growth opportunities that exporting has to offer”.
Elsewhere, a SpiritsEurope statement echoed the sentiment, as it “welcomes the EU’s desire to reach a negotiated solution with the US and stands ready to contribute with proposals to enhance our sectors’ mutual success”.
The global wine industry has presented a similar set of responses. The Wine Institute, the public policy advocacy group for around 1,000 Californian wineries, pointed to the issues of losing Canada as a chief market, as the US’s neighbour issued a total ban on US beer, wine and spirits sales in early March.
“Today’s announcement of new tariffs will only make it harder for American wineries to regain access to Canada, by far our most important export market,” said CEO Robert Koch. “As this dispute drags on, it is creating economic instability at a time when the industry is already under significant pressure.”
One country that has suffered from a significantly inflated tariff in yesterday’s announcement is South Africa, which faces a 30% levy on exports to the US.
A statement from trade body South Africa Wine said it is “deeply concerned” by the news and is “actively engaging with all relevant parties at the highest level to assess the full impact”.
