*This article was published in March 2025 and is updated continuously as new tariff developments occur
The global beverage alcohol industry has entered a new era of trade complexity. Threats of new beverage alcohol tariffs and other tariffs affecting supply chains and market access have created challenges and have the potential to impact everything from glass bottle sourcing to finished product distribution. WSSA Managing Director Alison Leavitt sat down with the Park Street Insider Podcast to examine the implications on our industry, while Adriana McKinnon, Director of Logistics at Park Street, has also shared some strategies that beverage alcohol brands can use to mitigate the impact of potential tariffs.
As developments in ongoing trade disputes continue, Park Street University has compiled a timeline below detailing updates related to potential beverage alcohol tariffs and other tariffs affecting the industry.
The Complete Beverage Alcohol Tariffs Timeline
March 20: EU Delays American Whiskey Tariffs Until Mid-April
The European Union postponed the implementation of its retaliatory tariffs against U.S. goods, including the planned 50% tariff on American whiskey. Originally scheduled to take effect on April 1st, these countermeasures were pushed to mid-April.
The postponement allowed negotiators more time to potentially reach an agreement while EU officials refine their list of targeted products in response to President Trump’s steel and aluminum tariffs. (Source)
March 13: President Trump Threatens 200% Beverage Alcohol Tariffs on EU
President Donald Trump threatened to impose 200% tariffs on alcohol from the EU, including wine and champagne, in response to the region’s retaliatory 50% beverage alcohol tariffs on U.S. whiskey announced on March 12.
The U.S. is still expected to announce the details of a “reciprocal” tariff policy in April that aims to address trade imbalances by levying tariffs on imported goods equivalent to the tariffs foreign countries impose on U.S. exports. Reports from the Department of Commerce and U.S. Trade Representatives due on April 1, 2025, are also expected to examine non-tariff barriers, subsidies, and other practices that disadvantage U.S. businesses. (Source)
March 12: EU Announced Plans to Impose Tariffs on American Whiskey
The EU responded to the White House’s decision to implement increased tariffs on aluminum and steel imports by introducing new tariffs on U.S. goods, with American whiskey targeted. The European Commission announced plans to impose a 50% tariff on American whiskey starting on April 1st.
Between 2018 and 2022, a similar trade dispute saw the EU enact a retaliatory 25% tariff on imports of American spirits until a two-year suspension on the tariffs, which was later extended from December 2023 until March 31, 2025. (Source)
March 6: U.S. Delayed Tariffs on All USMCA-Compliant Goods
President Trump temporarily exempted goods from Canada and Mexico from recently imposed 25% tariffs, offering beverage alcohol businesses a brief window until a likely reciprocal tariff policy enacted in April. The current exemption applies to all USMCA-compliant products, including wines and spirits. (Source)
March 5: Ontario Removed U.S. Alcohol From Shelves in Response to Tariffs
The Liquor Control Board of Ontario (LCBO) announced the removal of U.S. beverage alcohol on its website, following President Trump’s introduction of the blanket 25% tariff on Canadian imports into the U.S. market. (Source)
March 4: A 25% Tariff on Imports from Canada and Mexico Took Effect
President Trump officially proceeded to impose an additional 10% tariff on China and a 25% tariff on all imports from Canada and Mexico, including wine and spirits. The White House stated that the goal of the tariffs was to “combat the extraordinary threat to U.S. national security, including our public health posed by unchecked drug trafficking.”
WSSA Managing Director Alison Leavitt sat down with the Park Street Insider Podcast to examine the implications on our industry, including the immediate impact on denomination-protected products like tequila and Canadian whisky. (Source)
February 17: India Cut Tariffs on Bourbon
American bourbon producers received a boost as India slashed import tariffs from 150% to 100% following a White House meeting between President Trump and India’s Prime Minister Narendra Modi. The move gave manufacturers like Jack Daniels and Jim Beam a price advantage over Scotch whisky competitors in the Indian market. (Source)
February 13: U.S. Announced Reciprocal Tariff Policy for April
The White House announced a plan for “reciprocal” tariffs to take effect as early as April 2. The policy aims to match U.S. import taxes with those other countries impose on U.S. goods. Beyond targeting China, Canada, and Mexico, the plan could also impose higher tariffs on countries like India and European nations. Other factors, including non-tariff barriers, will be considered in the trade dispute, as well. (Source)
February 11: White House Announced Tariffs on Steel and Aluminum
The White House announced sweeping 25% tariffs on all steel and aluminum imported into the U.S. that would take effect on March 12, 2025. The policy aimed at leveling the playing field for U.S. manufacturers. The policy presented potential challenges for the beverage alcohol industry, particularly for brands using aluminum cans in their packaging. (Source)
February 3: Tariffs on Imports From Mexico and Canada Delayed for 30 Days
A deal was reached with Mexico and Canada to delay the implementation of 25% tariffs by one month. If implemented, tariffs on Canada and Mexico are expected to significantly impact the beverage alcohol industry.
Adriana McKinnon, Director of Logistics at Park Street, shared some strategies that beverage alcohol brands can use to mitigate the impact of potential tariffs. These include diversifying sourcing, utilizing free trade zones, and engaging in advocacy. (Source)
February 1: President Trump Announced Tariffs on Mexico, China, and Canada
President Trump signed an executive order announcing 10% tariffs on all imports from China and 25% on imports from Mexico and Canada, including wine and spirits, starting February 4. The stated goal of these tariffs was to pressure these nations into cooperating with preventing the trafficking of fentanyl at the U.S. border.
The announcement of new tariffs on Canada and Mexico cast doubt on the USMCA trade deal, which President Trump negotiated in his first presidential term and allowed many products to cross North American borders duty-free. (Source)
More Resources on the U.S. Beverage Alcohol Market
The Park Street Insider Daily Newsletter
Our Guide to the U.S. Alcohol Distribution Landscape