Sign in Subscribe
European Union

Toasts Not Tariffs Coalition Urges President Trump to Support Fair and Reciprocal Trade Agreement

Strategic Insights

— 2 min read

A coalition of 57 associations representing the entire three-tier chain of the U.S. alcohol industry, including farmers, producers, distributors, and retailers, has sent a letter to President Donald Trump urging him to secure a fair and reciprocal tariff-free trade agreement with the EU. The coalition, known as the Toasts Not Tariffs Coalition, commended the administration's objective to strengthen the U.S. economy and stated that a permanent return to tariff-free trade for spirits and wine would be a significant win for American workers, businesses, and consumers. The coalition raised concerns that if an agreement is not made soon, it could jeopardize the critical holiday selling season, potentially resulting in over 25,000 job losses and nearly $2 billion in lost sales.

Key Takeaways:

  • The Toasts Not Tariffs Coalition, comprising 57 associations, represents the entire three-tier chain of the U.S. alcohol industry and related industries.
  • The coalition seeks a permanent return to fair and reciprocal tariff-free trade for spirits and wine between the U.S. and EU.
  • A 15% tariff on EU wine and spirits could result in over 25,000 American job losses and nearly $2 billion in lost sales.
  • The U.S. alcohol industry supports more than 3.5 million jobs, generating $476 billion in annual economic activity.
  • Many U.S. and EU spirits are recognized as "distinctive products" and can only be made in their designated countries, such as Bourbon and Tennessee Whiskey in the U.S.
  • Wine and spirits are unique products, often tied to specific geographical regions around the world, and production cannot be easily relocated to circumvent tariffs.
  • Most U.S. wine exports go to countries with low or zero import duties, and nearly 86% of U.S. spirits exports go to countries that have eliminated tariffs on all U.S. spirits.
  • Ensuring predictable access to global markets creates jobs, supporting rural and urban communities.
  • Coalition leaders, including Chris Swonger, Margie A.S. Lehrman, Tom Wark, Scott DeFife, Eric Gregory, Michelle Korsmo, and Francis Creighton, emphasized the importance of securing a fair and reciprocal trade agreement to safeguard the U.S. distilled spirits sector and the hospitality industry.

Statistics:

  • Over 25,000 American jobs at risk due to a 15% tariff on EU wine and spirits.
  • Nearly $2 billion in lost sales expected due to a 15% tariff on EU wine and spirits.
  • 3.5 million jobs supported by the U.S. alcohol industry.
  • $476 billion in annual economic activity generated by the U.S. alcohol industry.
  • 86% of U.S. spirits exports go to countries with eliminated tariffs.
  • 98% of spirits imports originate from countries with eliminated tariffs on U.S. spirits.

Sources:

  • Toasts Not Tariffs Coalition letter to President Donald Trump.
  • Press release by the Distilled Spirits Council of the United States.
  • Quotes from coalition leaders: Chris Swonger, Margie A.S. Lehrman, Tom Wark, Scott DeFife, Eric Gregory, Michelle Korsmo, and Francis Creighton.

Read more