*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
April 9: President Trump Pauses Reciprocal Tariffs, Increases China Tariffs to 125%
President Donald Trump announced a 90-day pause on the sweeping reciprocal tariffs that took effect earlier this day, citing ongoing negotiations with dozens of countries seeking new trade deals. The baseline 10% global tariff remains in place, while tariffs on Chinese imports have been increased from 104% to 125% in response to China’s retaliatory measures.
Treasury Secretary Scott Bessent indicated that early negotiations would likely involve several of China’s neighboring countries. (Source)
April 9: Global ‘Reciprocal’ Tariff Rates Officially Take Effect
Imports from 86 countries into the U.S. were officially subjected to tariff rates exceeding the baseline 10%, ranging up to an effective rate of 104% on goods from China. China responded with tariffs of 84% on U.S. imports.
Japan, South Korea, Vietnam, and India are among the countries expected to begin negotiations with the U.S. in the near term. (Source)
April 8: EU Spares Bourbon From 25% Retaliatory Tariffs
The EU has decided against following through on its proposal to impose a 50% retaliatory tariff on American whiskey. It’s now proposing 25% tariffs on select U.S. goods in retaliation for last month’s levies on aluminum and steel imports, with exemptions for bourbon.
France, Ireland, and Italy pushed for the exclusion of whiskey in order to spare European producers from facing the 200% tariffs proposed by President Donald Trump as retaliation. (Source)
April 5: 10% Global Tariff Officially Takes Effect
U.S. customs agents began collecting the 10% tariff on all imports from many countries with higher levies on goods from 57 larger trading partners due to start at 12:01 a.m. ET on Wednesday, April 9th. USMCA-compliant goods from Canada and Mexico, including agave spirits and Canadian whisky, remain exempt. (Source)
April 3: Beer & Aluminum Can Imports to be Subjected to 25% Tariffs
The U.S. Department of Commerce has announced 25% duties on imported beer and empty aluminum cans, effective just after midnight on Friday, April 4. These products were added to the list of aluminum derivative items subject to tariffs initially announced in February. The tariffs apply to imports from all countries, and companies in the beverage sector should prepare for immediate pricing impacts and consider adjusting procurement strategies accordingly. (Source)
April 2: White House Unveils Reciprocal Tariff Policy
President Trump unveiled plans for substantial new tariffs on major U.S. trading partners. The White House announced the implementation of a reciprocal tariff policy, targeting most countries with at least 10% tariffs. Those with higher trade deficits would potentially face higher rates. For example, China and the EU would be taxed at 34% and 20%, respectively. Speaking at the White House, the President framed these measures as a correction to decades of unfavorable trade relationships that have disadvantaged American interests.
The paused tariffs on goods and services compliant with the United States-Mexico-Canada Agreement (USMCA) remain in effect, sparing items like tequila, mezcal, and Canadian whisky from the new policy.
These tariff announcements represent a potentially significant shift in U.S. trade policy that could reshape global supply chains and pricing structures for imported goods, including beverage alcohol products. (Source)
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 Intentions for Reciprocal Tariff Policy in 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