Wine, spirits groups urge Trump to ditch tariffs in favor of toasts

"For every $1 paid to a wine producer selling wine in the United States, the American distribution and hospitality sectors make $4.50," the letter noted. "Wine sales account for up to 60% of gross margins of full-service restaurants."

The letter noted the importance of the Canadian market to U.S. small- and medium-sized businesses in the industry.

"Canada is the number one export market for American wineries, accounting for 35% of all U.S. wine exports in 2024. As a result of the ongoing trade dispute with Canada, all American grown and produced alcohol beverages have been removed from numerous provinces across Canada," the U.S. Wine Trade Alliance wrote in the letter. "In addition to the provincial actions, Canada has also targeted American wine with a 25% tariff. The loss of this market has had a significant impact and comes at a particularly hard time for U.S. wineries. Restoring access to the Canadian market is critical for American wineries."

The Toasts Not Tariffs Coalition includes 57 U.S. associations and state guilds representing the entire three-tier chain of the U.S. beverage and alcohol industry. They say shifting suppliers won't work.

"Wine and spirits are unique products, often tied to specific geographical regions. Many U.S. and EU spirits are recognized as 'distinctive products' and can only be made in their designated countries – Bourbon and Tennessee Whiskey in the U.S., and Cognac in France. Similarly, wine is linked to its place of origin through American Viticultural Areas, appellations of origin or geographical indications. Consequently, production of these products cannot simply be relocated to circumvent tariffs," the letter noted.

The Toasts Not Tariffs Coalition projected that 15% tariffs on EU wine and spirits could result in more than 25,000 American job losses and nearly $2 billion in lost sales.

"Our sectors stand as a model of mutually beneficial trade, and the livelihoods of those working within it depend heavily on international trade," the group wrote in the letter. "Most U.S. wine exports go to countries with low or zero import duties."

Trump has rapidly reordered global trade by hitting nearly every nation with tariffs on products exported to the U.S. Trump wants to give U.S. companies an advantage at home and abroad. He also wants to bring back manufacturing production and jobs lost to low-cost nations in recent decades. Trump has said he also wants to use tariff revenue to reduce the tax burden on Americans and pay down the nation's $36 trillion in debt. 

A tariff is a tax on imported goods paid by the person or company that imports the goods. The importer can absorb the cost of the tariffs or try to pass the cost on to consumers through higher prices.