President Trump’s plans to impose tariffs on virtually all imports into the US have prompted the country’s hospitality industry to express their concerns jointly over the pending levies.
Earlier this month, President Trump announced a 90-day pause on some of the tariffs he revealed initially during his ‘Liberation Day’ announcement on 2 April. During a panel discussion last week (30 April), hosted by The Distilled Spirits Council of the US (Discus), National Restaurant Association executive VP of public affairs Sean Kennedy and Houston president of the US Bartenders Guild, Blair Ault, discussed how the proposals would affect the country’s bar and restaurant scene.
“We need an exemption,” said Kennedy. “We are not part of the problem. We’re absolutely part of the solution.”
Ault added: “Economic instability puts the bartender on the front line.” She cited how even minor price shifts can impact areas such as tips for staff and customer retention. “Even just when you raise a price by US$0.25 … that’s a 25% reduction in what you’re taking in.”
Ault also warned that tariffs could destabilise career paths in the country’s on-premise channel and reduce brand investment in venues. “New brands are really sold by bartenders,” she said. “When we have international brands that are not able to come or really not make it work, that’s a whole line of income for bartenders that’s not going to be available.”
Kennedy said: “Our business model is very low margins, very low cash on hand. The average restaurant has between 14 and 16 days of cash available.” For operators already facing high inflation and post-pandemic challenges, Kennedy warned that tariffs on spirits could force menu changes and price hikes and could even depress customer demand.
In the meantime, Discus has launched a coalition named ‘Toasts Not Tariffs’, which consists of US trade associations representing the three-tier chain of the country’s beverage alcohol sector united in opposing US, EU and UK tariffs on beverage alcohol products.
Discus CEO Chris Swonger issued a statement following the announcement at the start of April, urging the President to “liberate the US spirits sector from these tariff disputes”.
