The Toasts Not Tariffs Coalition, a group of 52 associations representing the entire three-tier chain of the U.S. alcohol industry and related industries, sent a letter today to President Donald J. Trump highlighting the special nature of the U.S. spirits and wine sectors and urging these products be excluded from any new or universal tariffs.

The organizations commended the administration’s objective to strengthen the economic vitality of the United States but raised concerns that any new tariffs on wine and spirits would undercut that goal due to the breadth of the industry and the unique recognition of many spirit and wine categories.

“Zero or low tariffs for wine and spirits are essential to U.S. producers’ export success in foreign markets,” the letter stated, pointing out that nearly 85% of U.S. spirits exports go to countries that eliminated tariffs on all U.S. spirits (such as EU, UK, Canada, Mexico, Japan and Australia), and the vast majority of U.S. wine exports go to countries where the import duty is low or zero.

The coalition explained that wine and spirits are unique products because many can only be produced in certain geographical regions around the world. 

Some spirits are recognized as “distinctive products” by the U.S. and its trading partners and can only be made in their designated countries such as Bourbon and Tennessee Whiskey in the United States, Tequila in Mexico, Cognac in France and Scotch Whisky in Scotland. 

Similarly, wine is inherently tied to its place of origin through labeling with appellations of origin or geographical indications. As a result, the production of these products cannot simply be moved to another country or region.

The coalition also noted that wine and spirits are high-value-added agricultural products with significant upstream and downstream supply chains that create good-paying jobs and generate more than $476 billion in combined annual economic activity. 

The letter stated, “Our companies produce wine and spirits in every U.S. state and support more than 3.5 million U.S. jobs. Wine and spirits also play a critical role in the restaurant and foodservice industry, which is an essential pillar of the U.S. economy that provides 15.7 million jobs and generates significant tax revenue at the local, state and federal levels.

“Our products support businesses across communities in every corner of the country ― from the farmers who grow inputs such as grapes, corn, wheat, barley, hops, rye and rice on more than 1 million acres of farmland, all the way through the supply chain to the waiters, bartenders, truck drivers and retail clerks,” the letter continued.

The coalition stated that U.S. tariffs would likely result in new retaliatory tariffs, jeopardizing U.S. exports and investments in U.S. distilleries and wineries, reducing demand for U.S.-grown agriculture products and threatening workers’ livelihoods across the supply chain. 

“We are particularly concerned that the EU will reimpose its tariff on American Whiskeys at 50% on April 1, if there is no agreement on steel and aluminum or the EU does not extend the suspension of its tariff,” the letter stated.  

The letter outlined how tariffs imposed by the EU and UK on American Whiskeys and other U.S. spirits from 2018 to 2021 in the steel and aluminum and large civil aircraft disputes negatively impacted U.S. spirits producers. Total American Whiskey exports dropped by 18%, and total spirits exports fell by 12% during that period. 

The coalition also raised concerns that in recent weeks, the premiers of the three largest provinces in Canada have threatened to remove all U.S.-produced alcohol from their provinces if the U.S. targets Canada with tariffs. 

“Import tariffs on wine and spirits will erode access to our largest export markets, halt investments in the U.S., prevent U.S. job growth and limit our industry’s ability to capture new markets,” the letter said.

The coalition stressed that the U.S. beverage alcohol marketplace has become increasingly difficult, and imposing “new tariffs on imported wine and spirits would harm, not help, American businesses, threatening the livelihood of tipped workers and small businesses across the country.”