On behalf of our community of more than 3,000 independent craft distilleries, the American Craft Spirits Association (ACSA) is deeply concerned about the impending threat of tariffs on important trade partners, including Canada and Mexico. This is yet another blow to our small business manufacturers who are already operating in a deeply challenging marketplace. Placing tariffs on imported goods will strip U.S. manufacturers of shelf space, increase production costs, and hinder the development of relationships abroad.
While we appreciate the Trump Administration’s decision to delay any tariffs on Mexico and Canada and recognize the importance of preventing illegal drugs and illegal migrants from crossing our borders, ACSA strongly opposes the imposition of tariffs that impact the production and sale of distilled spirits when used in trade disagreements unrelated to distilled spirits. According to a recent survey of our members, Canada and Mexico serve as important trading partners for both our import and export market, and we rely heavily on their resources and agricultural ingredients to produce American-made craft spirits.
Indiscriminate tariffs will skyrocket the costs on these important materials, and as a result, craft spirits businesses will likely have no choice other than to raise prices in an already viciously competitive global marketplace. The end result will most certainly lead to the loss of American jobs or worse, the closure of many of these small businesses. The more than 30,000 U.S. workers employed by this segment of American manufacturing will face uncertainty as to their paychecks.
In our current business climate, these tariffs compound the issues facing our community and threaten the future of craft spirits. Together with inflation, market access challenges, neoprohibitionist policies and the rampant glorification of heavily biased science, our industry faces a grim future without further action. Our government should support “Made in America”—not hinder our progress with bold political measures.
Spirits—and in particular, our coalition of small business manufacturers along with those who support our efforts, from farmers, to cooperages, to yeast and ingredient companies, to glass manufacturers, to name just a few—should not be dragged into a larger political dispute particularly at a time when so many of our small businesses are already fighting for survival.
