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Discus says tariffs could cost 31,000 US jobs
As the US moves forward with tariffs on Canada and Mexico, the Distilled Spirits Council of the US (Discus) has warned how this will harm the industry.
The 25% tariff on goods from Canada and Mexico issued by US president Donald Trump took effect today, 4 March, leaving the spirits industry bracing for economic impact.
On the eve of the tariffs, Discus president and CEO Chris Swonger issued a statement that said all three countries have benefitted from fair and reciprocal trade for decades.
“It makes no sense to have them embroiled in this trade dispute,” Swonger said. “Tariffs on spirits products from Canada and Mexico will jeopardise the industry’s contribution to the US economy.
“The North American spirits sector is highly interconnected and, as a result, tariffs on Tequila and Canadian whisky will harm US spirits companies that have these products in their brand portfolios. ”
According to economic analysis by Discus, a 25% tariff on distilled spirits imports from Mexico and Canada could result in the loss of 31,000 US jobs.
In 2024, the council reported the US imported US$5.2 billion worth of Tequila, US$622 million worth of Canadian spirits, and US$93 million worth of Mezcal.
“American spirits consumers as well as restaurants and bars across our country that are still struggling following the pandemic closures will shoulder the burden of these tariffs,” Swonger said. “Tequilas, mezcals and Canadian whiskies are rooted in geographical traditions and local craftsmanship that complement, rather than compete with, US distilled spirits brands.”
When the tariffs were initially introduced last month, Canadian provinces began pulling American products from shelves, and Swonger expressed concern that American whiskey would become embroiled in a new round of retaliatory tariffs.
“The Distilled Spirits Council, Tequila Chamber and Spirits Canada are committed to working collaboratively with all stakeholders to explore solutions that prevent tariffs on distilled spirits” Swonger said.
“Maintaining tariff-free access for all distilled spirits is crucial for supporting jobs and shared growth across North America.”
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