The past couple of months has been flush with discussions on tariffs. Impacting the beverage market, the administration has announced import duties on products from Mexico and Canada, and more recently suggested retaliatory tariffs on European wine are possible. As of press time, these tariffs have not gone into effect.

Currently, in Canada, a 25% tariff on American spirits and wines has been imposed, and these products have been removed from store shelves in most provinces, according to background information from the Distilled Spirits Council (DISCUS).  

On April 2, the United States could impose 25% tariffs on tequila, mezcal and Canadian whisky, when the current suspension expires. Also, on April 2, the United States could impose tariffs on wines and spirits from a range of countries, including a 200% tariff on European Union (EU) alcohol products, DISCUS background says.

DISCUS also shares that the EU’s previously imposed 25% tariff on American whiskeys currently is suspended. However, if there is no agreement on steel and aluminum, tariffs are scheduled to be reinstated at 50% on April 13. The EU also could impose tariffs on additional categories of U.S. spirits and wines, it adds.

In a conversation with Beverage Industry, Ed Brown, Partner at law firm Burr & Forman with the Beverage Services practice, discussed what impact tariffs could have on business operations in the United States, as well as what wholesalers, manufacturers, and retailers can expect when tariffs begin to roll out.