How U.S. Tariffs Are Hurting the Global Spirits Industry

U.S. tariffs on spirits are impacting tequila, whisky and spirits industries worldwide, resulting in uncertainty, increased prices, and job losses both domestically and globally. Equally harmful is the catastrophic affect on longstanding global trade relationships. (The Spirits Business).

The global tariff war began in February 2025,  when the U.S. imposed 10% tariffs on all imports from China and 25% tariffs on imports from Canada and Mexico, including spirits, wine, and beer. Mexico didn’t retaliate although Canada enacted 25% tariffs on U.S. beer, wine and spirits. Additionally, provinces pulled U.S. liquor from government liquor store shelves and stopped importing.

See a complete timeline of U.S. tariffs from February 1, 2025 to now.

Spirits Often Used as Pawn in the Tariff Game

According to a Beverage Daily article, the U.S. imports $10 Billion dollars worth of spirits each year, which has made the valuable industry a bargaining chip in trade squabbles. In 2004, the U.S. government filed a dispute with the World Trade Organization (WTO), claiming that European countries were illegally subsidizing Airbus manufacturing, making it difficult for America’s BOEING to compete. WTO ruled in favour of the U.S. who then imposed a 25% tariff on EU-made alcoholic beverages including spirits. In response, the EU imposed tariffs on spirits and other liquor products from the U.S.

See the timeline of the 2018-2021 U.S.-EU-UK tariff war on wine and distilled spirits.

Thrive Advisors Can Help Producers Navigate Uncertainties

Because alcohol is usually in high-demand, spirits will probably always be a pawn in global trade conflicts. If you need help navigating through these uncertain times and finding ways to reduce expenses and increase profits, Thrive Advisors can help.