Discus CEO testifies for tariff exemption on spirits
The Distilled Spirits Council of the US (Discus) has formally urged the administration to exempt spirits from current or future tariffs, warning that they negatively impact exports.
In March, the Office of the US Trade Representative (USTR) initiated Section 301 investigations into 16 nations, which could lead to new tariffs.
In his testimony before the Section 301 Committee, Discus CEO and president Chris Swonger reiterated the impact of tariffs on the spirits industry.
He stated that exempting the category would protect the nation’s hospitality sector, as well as “boost American jobs and support US export growth”.
“America’s spirits industry is a powerful economic engine,” said Swonger, who noted that the sector generates more than US$250 billion in economic activity, supports approximately 1.7 million US jobs and sources more than 2.7bn pounds of grains from American farmers.
“But the US spirits and hospitality sectors are facing significant economic headwinds. A slowdown in the spirits market, combined with ongoing trade frictions, has started to result in year-over-year job losses at US distilleries.”
He shared recent data that shows domestic spirits sales dropped by 2.2% in 2025 – the category’s first decline in decades. He also warned how exports of US spirits fell by nearly 4% last year, with US distilleries losing 3.5% of their workforce – equal to almost 1,000 jobs – from September 2024 to September 2025.
Furthermore, he pointed out that the US on-premise continues to face price hikes and permanent closures.
“In this environment, tariffs on imported spirits place additional strain on the sector,” Swonger continued. “Alcohol sales are particularly consequential for restaurant profitability, accounting for 21% of the total revenue for full-service restaurants. This underscores the outsized role these products play in sustaining the broader hospitality sector.”
In a further warning, Swonger said the implementation of tariffs could trigger retaliation from other nations that could “disproportionately harm American distillers and hospitality workers”.
For example, when the EU imposed tariffs on American whiskey from 2018 to 2021, US exports fell by 20%. In its biggest export market, Canada, US spirits exports plunged by 63% in 2025 due to trade tensions, which led to the removal of American products from Canadian provinces last March.
Swonger also cautioned that the EU’s suspension of planned retaliatory tariffs on American spirits, set to expire in August 2026, contributed to a 3% decline in US spirits exports to the EU.
Beyond his call for no tariffs on spirits, Swonger called on the administration to preserve open markets like the EU and UK, speedily implement recently agreed trade deals and pursue new agreements in key export markets.
Swonger concluded: “These steps will support the administration’s goals of increasing US exports and creating good-paying American jobs across the hospitality sector.”
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