US govt urged to build on Southeast Asia trade momentum
Following the signing of a reciprocal trade deal between the US and Southeast Asia, the Distilled Spirits Council of the US (Discus) has urged for the progress to carry over to critical markets.
On 26 October, the Trump administration announced it had reached reciprocal trade agreements with Malaysia and Cambodia.
Cambodia – the 109th biggest exporter of US spirits with an 2024 annual total of US$114,000 – has agreed to eliminate its 35% tariffs on US spirits immediately.
Malaysia – the 52nd biggest US spirits exporter with an annual total of U$3.7 million – has also agreed to remove its tariff on US spirits, which has been in place for nine years.
In addition, Malaysia will end its discriminatory tariff on distilled spirits and will conduct an ‘independent impact assessment’ that will aim to finalise a definition for spirit-based ready-to-drink products by the end of 2028.
The US is also in reciprocal trade negotiations with Vietnam and Thailand, which boast an annual export total of US$1.2m and US$3m respectively.
While the new trade agreements provide encouraging signs, Discus has called on the Trump administration to steer the focus towards its main markets.
It said in a statement: “We are encouraged by this positive development and urge the administration to build on this progress by securing a return to zero-for-zero tariffs on distilled spirits across all markets, most notably with our key trading partners, including the European Union and the UK.
“Permanent tariff-free trade in our most critical markets is essential to ensuring the continued growth and vitality of the US spirits industry.”
In May, president Trump announced a new trade deal with the UK that would cap all potential tariffs at 10% – a month after he unveiled a global tariff plan that would see all countries face a baseline 10% tax.
The US also agreed to a 15% deal with the EU.
In its American Distilled Spirits Exports 2025 Mid-Year Report, Discus revealed exports of American spirits fell by 9% to US$593.6m in the second quarter of 2025.
Canada, it’s second-largest export market behind the EU, saw US spirits sales plunge by 68% in April 2025.
In September, Türkiye removed its 70% retaliatory tariff on US spirits, which prompted Discus president and CEO Chris Swonger to urge the Trump administration “to build on this momentum by securing the permanent return to zero-for-zero tariffs for distilled spirits products with our key trading partners.”
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