Trump announces global tariffs
After months of threats, the US president unveiled an economic plan that includes a global 10% tariff.
On Wednesday (2 April), US president Donald Trump brought months of tariff talk to a head when he announced globe-spanning tariffs to begin 9 April. The move includes a minimum 10% tariff on nearly all countries, with an additional 60 “worst offenders” receiving a rate at roughly half of what Trump claims those countries impose on US goods.
The spirits industry finds itself in the cross hairs of these ongoing trade wars, as drinks like Tequila, Bourbon, and Cognac are geographically bound by law. What’s more, goods that contribute to spirit production such as glass and cork often come from outside countries.
Distilled Spirits Council of the US (Discus) president and CEO Chris Swonger issued a statement following the tariff announcement, urging the president to liberate the US spirits sector from trade disputes and a return to zero-for-zero tariffs for spirits production.
“The US spirits sector has been the model of success for fair and reciprocal trade for decades. During the time that we had zero-for-zero tariffs with 51 countries, our industry flourished, benefiting US distillers, farmers and the wider hospitality industry,” Swonger said.
“A return to zero-for-zero tariffs with our key trading partners will enable the 3,100 distillers across the United States to partake in the limitless growth opportunities that exporting has to offer.”
As part of Trump’s plan, the EU will receive a 20% tariff, while the UK will take a 10% hit. Japan meanwhile is to be levied a 24% tariff, with China at 34%. Trump’s previous administration engaged in trade disputes with the EU over steel and aluminium tariffs that resulted in retaliatory tariffs being placed on US and European goods, including spirits.
In the recent past, the global spirits industry has thrived with open export markets. Certain categories, like Scotch whisky, rely heavily on the US, while Bourbon brands continue to look to reach international drinkers in the EU and beyond. Across the board, there is a sense that spirits sales will suffer.
In response to Trump’s tariffs, the Scotch Whiskey 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.”
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