Discus and SWA present unified front on tariffs
The heads of trade bodies the Distilled Spirits Council of the US (Discus) and the Scotch Whisky Association (SWA) are pushing for zero-for-zero tariffs on Bourbon and Scotch.
While the worlds of Scotch and Bourbon may seem in opposition on the retail shelf, on the subject of tariffs, they are a unified front.
Chris Swonger, president of Discus, and SWA CEO Mark Kent came together in Washington DC last week to continue their fight against the tariffs imposed by US president Donald Trump, many of which went into effect earlier this month.
In May, the US and UK agreed to a deal that would put a 10% tariff on all UK goods imported to the US.
“The US spirits industry is going to advocate as strongly as we can to get the 10% broad UK import tariff pulled off Scotch whisky, and in return, I know, if there’s ever a risk for another tariff on American whiskey, that Scotch whisky is going to take that same position,” Swonger says. “There is no light between us on tariffs.”
Discus estimates that a 10% tariff on UK goods could lead to retail sales losses of more than US$300 million and the removal of 3,300 US jobs.
During the first Trump administration, a 25% tariff on Scotch whisky handicapped the category’s ability to compete in the US. What’s more, the two styles rely on one another as Bourbon brands routinely send used barrels to Scotland. Kent calls the respective industries symbiotic as the exchange of barrels remains vital for both parties.
“We are very closely intertwined,” Kent stresses. “We’ve got investments in both directions. We have a lot of common members and a lot of common interests.”
He added: “It’s important that we continue to explain not just the partnership between our industries, but some of the challenges that we are facing and the fact that zero-for-zero tariffs has served us so well for so long.”
Part of the challenge has been breaking through to the president who is a teetotaller after losing his brother to substance abuse. Swonger says he has seen no indication that Trump’s personal attitudes toward alcohol have had any impact on his policy decisions, saying that at the end of the day, he is a businessman who understands the importance of a healthy hospitality sector.
“I would say with confidence that many of the key stakeholders within the Trump administration are fully aware of our support for zero-for-zero tariffs,” Swonger emphasised. “We’ve got to be forceful, respectful and speak with a voice of one. And we’re doing that.”
‘Anxious time’
Still, there is a sense of anxiety and frustration among distillers who grapple with the day-to-day uncertainty and unpredictability that Trump and his tariff agenda have caused.
“We’re hoping that once these trade deals get solidified and the details come together, we can untangle ourselves from all of this,” Swonger says. “Predictability is really important for business, and he understands that, but it’s an anxious time for the industry.”
Swonger says that he and Kent will take every opportunity to advocate for zero-for-zero tariffs, getting together while Trump was in Scotland in July and looking ahead to September when the president will be back in the UK.
“I still believe, despite the anxiety and the unpredictability that the industry is grappling with, we’ve got to stay on this and have some optimism that when it’s all said and done, we’re going to untangle ourselves from this.”
The US remains the largest export market for Scotch whisky, sending US$1.22 billion in product to the States in 2024.
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