What We Know About New Tariffs on American Alcohol

This story was originally published on February 2, 2025 and has been updated.

It’s been more than a year since President Donald Trump kicked off the trade war that has plagued businesses and consumers across the U.S. and around the world, and yet, new events continue to unfold. When Trump formally enacted 25 percent tariffs on all goods from Canada and Mexico on February 1, 2025—plus 10 percent tariffs on goods from China—the move incited what has been an ongoing period of frantic negotiating and countermeasures, in which the American alcohol industry has been amongst the prime targets. 

In March 2025, Trump officially increased tariffs on steel and aluminum from all countries to 25 percent, spurring retaliatory tariffs from the EU, too. And on April 2, 2025, Trump announced a minimum of 10 percent tariffs on all imported goods, including 20 percent on goods from the European Union.

The wine and spirits industries were caught in the crosshairs of Trump’s last trade war from 2018 to 2023, which dealt a serious blow across all three tiers. American whiskey producers lost sales in export markets due to EU tariffs, and wine and spirits importers, distributors, and buyers—and therefore, consumers—all saw costs rise thanks to U.S. tariffs on certain imports. The impact of this trade war could be even greater, and the unpredictable nature of this trade policy has created a new crisis for the alcohol industry.

Here’s where you’ll find updates on the developing story of how tariffs will impact the American alcohol industry.

The U.S. Enacts New Tariffs on More Than 60 Countries, Including 50 Percent on Canadian Alcohol

Published July 24, 2026

The Trump administration remained determined to maintain a tariff-forward trade policy as it imposed tariffs of 10 to 12.5 percent on more than 60 countries just after midnight on July 24. This legislation replaces the temporary tariffs enacted by Trump on February 20, which expired at midnight.

With these levies, the Trump administration is attempting to find new ways to carry forward their trade policy after the Supreme Court struck down Trump’s initial, sweeping tariffs, which were unlawfully created under the International Emergency Economic Powers Act. The administration says the new tariffs fall under Section 301 of the Trade Act of 1974 “for their failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor.” 

Earlier this week, Trump also cited Section 338 of the Tariff Act of 1930 as it imposed an additional 50 percent tariffs on many Canadian imports, including alcohol. Section 338 “empowers the President to impose tariffs when a country disadvantages U.S. exporters relative to the exports of another country,” said the White House’s fact sheet, explicitly citing Canadian provinces’ boycott of U.S. alcohol, which has resulted in an 81 percent decrease of U.S. exports to Canada from March 2025 to February 2026.

In a statement, Chris Swonger, the president and CEO of the Distilled Spirits Council of the United States (DISCUS) expressed appreciation for the acknowledgement of the damage caused by Canadian boycotts, but also said, “Imposing a 50 percent tariff on imported spirits from Canada deepens trade tensions and raises the risk of further retaliation at a time when many U.S. hospitality businesses continue to face financial hardships.”

Scotch Whisky Tariffs End

Published July 24, 2026

Even as new tariffs went into effect on July 24, the spirits industry celebrated the lifting of U.S. tariffs on imports of Scotch whisky, which was announced after King Charles III and Queen Camilla’s April state visit to the U.S. A 10 percent tariff on Scotch whisky had been imposed in April 2025 and had been threatened to increase to 25 percent for single malts. The first shipment of tariff-free Scotch departed the U.K. on the morning of July 24.

Supreme Court Strikes Down Tariffs

Published February 20, 2026

The Supreme Court delivered a major setback to Trump’s economic policy, ruling that he exceeded his authority by imposing sweeping tariffs using a 1977 law intended for a national emergency. The 6-3 court decision invalidates many of Trump’s tariffs, like the country-by-country or “reciprocal” tariffs applied to goods from nearly every U.S. trading partner, including European wine and spirits. 

The ruling comes following lawsuits from several states and small businesses, including New York–based wine importer V.O.S. Selections, and could have significant implications for the wine industry, particularly importers and distributors that have been paying or anticipating tariff costs, who may now be eligible for reimbursement.

No Tariff Exemption for European Wine and Spirits, Confirmed 

Published August 25, 2025 

Despite industry efforts on both sides of the Atlantic, the zero-for-zero tariffs on wine and spirits previously in effect between the U.S. and the EU is not part of the new trade agreement. The European Commission will continue to press for a preferential tariff for the sector.  

New, Higher Tariff Rates Begin 

Published August 7, 2025

The Trump administration’s new tariffs went into effect just after midnight on Thursday, August 7, increasing rates for more than 90 countries. This includes a 50 percent tariff for Brazil, 39 percent for Switzerland, 30 percent for South Africa, 15 percent for New Zealand, and the previously negotiated 15 percent deal for the European Union and Japan.

A 35 percent tariff on goods from Canada was also put into place on Friday, August 1, though it does not apply to goods covered by the U.S.-Mexico-Canada (USMCA) trade agreement, which includes most alcoholic beverages. Goods from Mexico are subject to a 25 percent tariff, though it also does not apply to goods covered by the USMCA agreement, and the country secured a 90-day extension for additional trade talks.

No Exception for European Wine and Spirits in Sight, Despite Industry Outcry

Published August 7, 2025

Since the U.S. and EU struck a deal for 15 percent tariff rates on European goods, beverage industry organizations on both sides of the Atlantic have urged leaders to put an exemption into place for wine and spirits. However, with the 15 percent tariffs officially in place, no such exemption has been agreed upon.

The Toasts Not Tariffs Coalition, a group of 57 associations representing the alcohol industry and related industries, sent a letter to Trump on August 6 asking him to enact tariff-free trade for wine and spirits between the U.S. and EU. The coalition estimates that the 15 percent tariff rate could result in more than 25,000 American job losses.

“Our sectors stand as a model of mutually beneficial trade, and the livelihoods of those working within it depend heavily on international trade,” the letter stated. Leaders from the Distilled Spirits Council of the United States, American Craft Spirits Association, National Association of Wine Retailers, Wine & Spirits Wholesalers of America, National Restaurant Association, and more echoed the need for tariff-free trade of wine and spirits.

Trump Lands on 15 Percent Tariffs for EU Goods in Trade Deal

Published July 29, 2025

On Sunday, July 27, the U.S. and EU reached a trade agreement that includes a 15 percent tariff on the vast majority of European goods. This is half of the 30 percent rate that Trump previously threatened to put into effect on August 1, but it’s more than many EU members had hoped; European Commission President Ursula von der Leyen called the deal “the best we could get.”

Now, the beverage industry waits to see whether it will be subjected to the 15 percent tariff rate, or whether it will be included in the list of exempted “strategic products,” which currently include airplanes, some chemicals, some generic drugs, and some natural resources. Negotiations are ongoing, with von der Leyen noting that a decision on wine and spirits has not been made.

Last week, Trump also agreed to a 15 percent tariff rate for imports from Japan.

U.S. Beverage Trade Organizations Express Optimism About EU Trade Agreement

Published July 29, 2025

Chris Swonger, the president and CEO of DISCUS, took a positive view on the EU agreement in a written statement, noting that he hopes that the deal “will lead to a return to zero-for-zero tariffs for U.S. and EU spirits products … For more than 20 years, large and small distilleries across the U.S. have flourished under a tariff-free relationship with the EU, our largest export market.”

The U.S. Wine Trade Alliance (USWTA) is also hopeful about a positive outcome, though it is urging Trump to exempt wine from the tariff list. “This weekend’s news is a step in the right direction,” USWTA president Ben Aneff said in a statement. “We are heartened that negotiations are leaving room for wine to be included under the zero-for-zero exemption structure. Now is the time to ensure wine is prioritized in the final agreement.”

According to USWTA, the decline in EU wine imports resulted in a loss of $479 million from U.S. distribution, retail, and hospitality businesses in May 2025, and U.S. wine exports have decreased by 41 percent year over year.

Trump Pauses Most Tariffs on Imports for 90 Days

Published April 10, 2025

On Wednesday, April 9, hours after recently announced tariffs went into effect on all imports, Trump wrote on Truth Social that he had authorized a 90-day pause on most of those tariffs. The blanket 10 percent tariff on all imports will remain in effect during that time period, but the higher tariff levels imposed on some countries have been paused—with the notable exception of China, which is now subject to 125 percent tariffs.

This is a temporary relief for producers, importers, and buyers of alcohol from the European Union, South Africa, Japan, Switzerland, and more, which would have been subject to higher levels of tariffs. The EU has also paused its planned retaliatory tariffs on U.S. goods in response, though American whiskey and wine had already been removed from the list of impacted goods.

EU Drops American Whiskey and Wine from its Tariff List

Published April 8, 2025 

The EU will hit the U.S. with 25 percent retaliatory tariffs on a range of goods in response to the Trump administration’s duties on aluminum and steel—but in a much-needed win for the alcohol industry, it has exempted American whiskey and wine. The move came after lobbying from countries including France, Italy, and Ireland, who feared the impact on its alcohol industry if Trump followed through on his threatened 200 percent tariffs on European wine. EU member states will vote on the final list of products on Wednesday, April 9, with the tariffs due to go into effect from April 15.

Trump Imposes Minimum 10 Percent Tariffs on All Imported Goods

Updated April 2, 2025

In a press conference, Trump announced that he would impose a minimum of 10 percent tariffs on all goods imported into the U.S. Several countries will be subject to higher tariff levels, including 20 percent on goods from EU countries, 24 percent on Japan, 31 percent on South Africa, and 32 percent on Switzerland. 

This could have serious consequences for American alcohol businesses, most of which rely on imports at some point in their supply chain. 

In a statement after the tariffs were announced, Swonger said, “We urge President Trump to liberate the U.S. spirits sector from these tariff disputes by negotiating deals that get us back to fair and reciprocal zero-for-zero tariffs for spirits products.”

EU Delays 50 Percent Tariffs on American Whiskey 

Published March 21, 2025

The EU has postponed the 50 percent tariff on American whiskey, which was due to go into effect on April 1. It was part of a broader package of retaliatory tariffs on $28 billion worth of U.S. goods, which has now been pushed back until April 13 to give the European Commission time to consider the list of targeted goods with member states and to negotiate.  

American whiskey was targeted by the EU during the trade war that took place in Trump’s first term in office, but an agreement was reached under former President Joe Biden, and the tariff was suspended in 2022. This suspension was due to expire on March 31, 2025. 

U.S. Wine Trade Alliance Advises Members to Stop Imports of EU Alcohol

Published March 19, 2025

In an email sent to members, the U.S. Wine Trade Alliance strongly advised American companies to stop all shipments of wine, spirits, and beer from the EU. “The current risk of tariffs is too high,” the letter stated. Following the April 1 enactment of EU tariffs on American whiskey, “We believe it possible the U.S. could immediately retaliate with tariffs on April 2, using a never-before-used section of trade law.”

The concern is that any goods in transit at the time of U.S. tariff enactment would likely be subject to the 200 percent tariff; with that potential deadline less than two weeks away, shipments sent at this point risk being subject to that tariff, which would have huge financial consequences for American businesses.

Trump Threatens 200 Percent Tariffs on EU Alcohol

Published March 13, 2025

On March 13, Trump threatened to enact 200 percent tariffs on all wines and other alcohol products from the EU, in response to the EU’s proposed 50 percent tariff on American whiskey. “This will be great for the wine and Champagne businesses in the U.S.,” he wrote on Truth Social.

As evidenced by past tariffs on EU wines, tariffs of this magnitude would place extraordinary financial strain on American wine businesses. For every dollar lost by European wine producers, U.S. businesses lose more than $4, according to the U.S. Wine Trade Alliance.

The market has responded swiftly, with stocks in EU-based alcoholic beverage companies, including LVMH Moët Hennessy, Pernod Ricard, and Campari, drastically dropping. Just the day before, after the EU’s retaliatory tariffs were announced, U.S. whiskey companies similarly took a hit; Brown-Forman was among the S&P 500’s biggest decliners, with shares falling five percent.   

As the U.S. Enacts 25 Percent Tariffs on Aluminum and Steel, the EU Retaliates

Published March 12, 2025

On March 12, Trump increased tariffs on all steel and aluminum imports to 25 percent, saying this action was necessary “to protect America’s critical steel and aluminum industries, which have been harmed by unfair trade practices and global excess capacity.”

In response, the EU announced that it would enact counter tariffs on $28 billion worth of U.S. goods in April. This includes a tariff on American whiskey, which was suspended in 2022 but expires on March 31, 2025. That American whiskey tariff will reach 50 percent on April 1.

In response, Distilled Spirits Council of the United States (DISCUS) president and CEO Chris Swonger called the retaliatory tariffs “deeply disappointing” and urged the U.S. and EU governments to come to a zero-for-zero tariff resolution. “Reimposing these debilitating tariffs at a time when the spirits industry continues to face a slowdown in U.S. marketplace will further curtail growth and negatively impact distillers and farmers in states across the country,” Swonger said in a statement.

U.S. Delays Tariffs on Goods from Mexico and Canada Once Again

Published March 6, 2025

After speaking with Mexican President Claudia Sheinbaum, Trump wrote on the Truth Social media platform that he would suspend tariffs on Mexican products traded under the rules of the U.S.-Mexico-Canada Agreement (USMCA) until April 2, which includes tequila, mezcal, and other beverages. Later, he extended that reprieve to USMCA goods from Canada as well.

Ontario and British Columbia Once Again Pull American Alcohol Products from Shelves

Updated March 12, 2025

In a memo sent to suppliers and agents of American-made products on March 4, the Liquor Control Board of Ontario (LCBO) announced that it would stop purchases of all U.S. products and remove all U.S. products from its shelves, under the mandate of the Ontario government and in direct response to U.S. tariffs. It shared that messaging on its website as well, stating that the move was “For the good of Ontario. For the good of Canada.” The province’s premier, Doug Ford, had previously stated that LCBO sells nearly $1 billion worth of American alcohol annually.

On March 11, British Columbia followed suit, pulling American alcohol from its shelves from government-run BC Liquor stores. British Columbia premier David Eby also noted that BC Liquor Distribution would no longer buy American alcohol.

U.S. Tariff Deals with Canada and Mexico Expire, Spurring Retaliatory Tariffs Once Again

Updated March 6, 2025

On March 4, the Trump administration’s previously negotiated agreement to delay 25 percent tariffs on Canada and Mexico expired, reinstating those tariffs in full; Trump later agreed to suspend most of Mexico’s tariffs until April 2. Trump had confirmed the previous day that the tariffs would go into effect, then stating that there would be no opportunity for either country to make another deal. China also saw its tariff double, bringing the level to 20 percent. The S&P 500 fell 1.8 percent, its biggest drop of the year, after the announcement, and fell an additional 0.7 percent at the start of trading on March 4.

All three countries initially promised retaliatory tariffs in response. Canadian Prime Minister Justin Trudeau said that $100 billion of American goods would be subject to tariffs over the next 21 days.

DISCUS Responds to Renewed Tariffs

Published March 4, 2025 

On March 4, the Distilled Spirits Council of the United States (DISCUS) released a public response from president and CEO Chris Swonger. “Tariffs on spirits products from Canada and Mexico will jeopardize the industry’s contribution to the U.S. economy,” he stated. “The North American spirits sector is highly interconnected and, as a result, tariffs on tequila and Canadian whisky will harm U.S. spirits companies that have these products in their brand portfolios.” According to their economic analysis, 25 percent tariffs on imports alone—without taking retaliatory tariffs into consideration—could lead to a loss of more than 31,000 U.S. jobs. 

U.S. Set to Enact Worldwide Tariffs on Aluminum and Steel

Published March 4, 2025

Trump has promised that tariffs on steel and aluminum would expand to imports from all countries on March 12. The Trump administration’s 2018 tariffs on European steel and aluminum spurred retaliatory tariffs on American whiskey. A deal to suspend those tariffs was struck in 2022, under President Joe Biden, but it will expire at the end of March.

U.S. Previously Reached Deals with Mexico and Canada to Delay Tariffs

Published February 3, 2025

Before the tariffs were due to take effect on February 4, Sheinbaum and the Trump administration reached a series of agreements on border security to delay their onset for a month. Sheinbaum agreed to deploy 10,000 troops, who Trump said would be designated to stop the flow of migrants and illegal drugs across the U.S.-Mexico border. Mexico will also receive help from the U.S. government to prevent the trafficking of weapons into the country. 

Later on February 3, Canada and the U.S. reached a deal to delay U.S. tariffs on Canadian goods, following two calls between Trudeau and Trump. “I just had a good call with President Trump,” Trudeau said in a post on X. “Proposed tariffs will be paused for at least 30 days while we work together.” The two administrations will work to negotiate a border deal over the next month.

Canada’s Prime Minister Previously Announced Retaliatory Tariffs on American Alcohol

Published February 2, 2025

On the evening of February 1, Trudeau announced that the country would impose 25 percent tariffs against $155 billion worth of American goods in response to Trump’s tariffs. American alcohol products were the first named as included in these tariffs.

“Like the American tariffs, our response will also be far-reaching and include everyday items such as American beer, wine, and bourbon…” Trudeau said in a televised press conference. Tariffs were due to go into effect on February 4 for $30 billion worth of goods, followed by further tariffs on $125 billion worth of goods in 21 days; both measures are now on hold.

Canadian Provinces Ban American Alcohol from Government Stores

Published February 2, 2025

Many Canadian premiers announced their own measures against American alcohol over the weekend. Eby urged British Columbia residents to boycott U.S. alcohol and banned American alcohol from Republican states in BC Liquor Stores, which are government-run.

“For our first of many steps, effective today, I have directed BC Liquor sales to immediately stop buying American liquor from red states,” he said in a televised address. “Liquor store employees will be removing the most popular of these brands from government store shelves.” British Columbia purchases $3.5 billion worth of liquor each year, he said.

Ontario, as it had previously promised, followed suit. “Starting Tuesday, we’re removing American products from LCBO shelves,” said Ontario premier Doug Ford in a statement posted to X on Sunday morning. “As the only wholesaler of alcohol in the province, LCBO [the Liquor Control Board of Ontario] will also remove American products from its catalogue so other Ontario-based restaurants and retailers can’t order or restock U.S. products.” LCBO sells nearly $1 billion worth of American alcohol annually, Ford added.

The premiers of Nova Scotia, Newfoundland, Labrador, Manitoba, and Prince Edward Island, as well as the government of Quebec, also instructed the removal of American alcohol from shelves. These measures are also now on hold. 

DISCUS Denounces Canada’s Retaliation Against the Spirits Industry

Published February 2, 2025

Swonger, on behalf of DISCUS, denounced the retaliatory measures from Canadian provinces in a statement on February 2. “This aggressive retaliation targeting American spirits is extremely disappointing and counterproductive. Taking American spirits off the store shelves will needlessly reduce revenues for the provinces and hurt Canadian consumers and hospitality businesses,” he said. “We urge the U.S. and Canada to work together to reach an agreement that continues to foster a thriving spirits industry between our two countries.”

According to DISCUS, the U.S. exported $255 million worth of spirits from Canada and imported $537 million worth of Canadian spirits in 2023. Swonger’s statement comes after a joint statement from DISCUS, the Chamber of the Tequila Industry, and Spirits Canada was made the previous day, before Trudeau’s announcement. 

“We are deeply concerned that U.S. tariffs on imported spirits from Canada and Mexico will significantly harm all three countries and lead to a cycle of retaliatory tariffs that negatively impacts our shared industry,” the statement said. “Recently the North American spirits sector is experiencing a slowdown due to the continued impact of COVID and economic factors like inflation. This slowdown will be exacerbated if a cycle of tariffs and matching retaliation begins, and the impact will be felt not just by the distilled spirits industry, but also by consumers and the struggling hospitality sector, which is still recovering from the pandemic.”

Trump Admits That Tariffs Will Come With “Some Pain”

Published February 2, 2025

On March 2, Trump said that tariffs would bring “some pain” to Americans but justified the actions as worthwhile. “Will there be some pain? Yes, maybe (and maybe not!). But we will make America great again, and it will all be worth the price that must be paid,” he wrote on Truth Social.

Courtney Schiessl Magrini is the editor-in-chief for SevenFifty Daily and the Beverage Media Group publications. She has held sommelier positions at some of New York’s top restaurants, including Marta, Dirty French, and Terroir, and her work has appeared in Wine Enthusiast, GuildSomm, Forbes.com, VinePair, EatingWell Magazine, and more. She holds the WSET Diploma in Wines. Follow her on Instagram at @takeittocourt.