Latest news with #Swonger
NBC News
24-04-2025
- Business
- NBC News
American liquor exports hit record high in 2024, driven by tariffs
U.S. spirit exports reached a record $2.4 billion in 2024, driven in large part by tariff concerns and ongoing global trade disputes. That is according to the American Spirits Exports report published by trade association the Distilled Spirits Council of the United States on Thursday. 'U.S. spirits exports hit a new high in 2024, recapturing lost market share since the UK and EU lifted retaliatory tariffs that were applied between 2018-2021,' said DISCUS President and CEO Chris Swonger. 'Unfortunately, ongoing trade disputes unrelated to our sector have caused uncertainty, keeping many U.S. distillers on the sidelines and curtailing sales growth.' U.S. spirits exports to the EU surged by 39%, fueled by concerns over the potential return of a 50% tariff on American whiskey imports in 2025, which was suspended in 2022. In March, Trump threatened to put 200% tariffs on French Champagne and other EU spirits, which led European world leaders — specifically from Ireland, France and Italy — to advocate for bourbon tariffs not to return as part of retaliatory measures. The threat of that specific tariff has faded somewhat as the U.S. and EU continue trade negotiations. Approximately 50% of U.S. spirits were exported to the EU — totaling $1.2 billion — making it the largest export market. Exports to the rest of the world, however, declined by nearly 10%, the report found, which reflects the broader softening alcohol category. Suntory Beam, the Japanese maker of Jim Beam bourbon whiskey, said in December it was preparing for tariffs by stockpiling supply in Europe. The company is already heavily reliant on France and the United Kingdom, which make up over 50% of its global exports market over the last eight years, according to global trade data from Panjiva. Several of the top states for exports in 2024 are significant bourbon economies, according to the report. Top 5 states exporting U.S. spirits: Tennessee ($934 million) Kentucky ($751 million) Texas ($354 million) Florida ($334 million) Indiana ($142 million) Still, American whiskey exports, which accounted for 54% of all U.S. spirits exports, dipped 5.4% to $1.3 billion. Swonger said that while outlook for spirits remains highly unpredictable with ongoing trade disputes, one fact rings true in the data: Exports go to countries that have eliminated tariffs. 'We are thankful for President Trump's early success in securing India's reduction of its tariff on Bourbon from 150% to 100%,' Swonger said. 'It's our hope that the administration builds on this positive momentum by securing additional tariff reductions in India and reducing trade barriers in other countries.' Headwinds remain for the industry. Canada, the second largest market for U.S. spirits exports, imposed a 25% tariff in on alcohol coming over the border in March, and several provinces have removed product from shelves. Constellation Brands, which lowered long-term 2027 and 2028 guidance significantly around ' the anticipated impact of tariffs.'
CNBC
24-04-2025
- Business
- CNBC
American spirit exports hit record high in 2024, driven by tariffs
U.S. spirit exports reached a record $2.4 billion in 2024, driven in large part by tariff concerns and ongoing global trade disputes. That is according to the American Spirits Exports report published by trade association the Distilled Spirits Council of the United States on Thursday. "U.S. spirits exports hit a new high in 2024, recapturing lost market share since the UK and EU lifted retaliatory tariffs that were applied between 2018-2021," said DISCUS President and CEO Chris Swonger. "Unfortunately, ongoing trade disputes unrelated to our sector have caused uncertainty, keeping many U.S. distillers on the sidelines and curtailing sales growth." U.S. spirits exports to the EU surged by 39%, fueled by concerns over the potential return of a 50% tariff on American whiskey imports in 2025, which was suspended in 2022. In March, Trump threatened to put 200% tariffs on French Champagne and other EU spirits, which led European world leaders — specifically from Ireland, France and Italy — to advocate for bourbon tariffs not to return as part of retaliatory measures. The threat of that specific tariff has faded somewhat as the U.S. and EU continue trade negotiations. Approximately 50% of U.S. spirits were exported to the EU — totaling $1.2 billion — making it the largest export market. Exports to the rest of the world, however, declined by nearly 10%, the report found, which reflects the broader softening alcohol category. Suntory Beam, the Japanese maker of Jim Beam bourbon whiskey, said in December it was preparing for tariffs by stockpiling supply in Europe. The company is already heavily reliant on France and the United Kingdom, which make up over 50% of its global exports market over the last eight years, according to global trade data from Panjiva. Several of the top states for exports in 2024 are significant bourbon economies, according to the report. Top 5 states exporting U.S. spirits: Still, American whiskey exports, which accounted for 54% of all U.S. spirits exports, dipped 5.4% to $1.3 billion. Swonger said that while outlook for spirits remains highly unpredictable with ongoing trade disputes, one fact rings true in the data: Exports go to countries that have eliminated tariffs. "We are thankful for President Trump's early success in securing India's reduction of its tariff on Bourbon from 150% to 100%," Swonger said. "It's our hope that the administration builds on this positive momentum by securing additional tariff reductions in India and reducing trade barriers in other countries." Headwinds remain for the industry. Canada, the second largest market for U.S. spirits exports, imposed a 25% tariff in on alcohol coming over the border in March, and severalprovinces have removed product from shelves. Distiller and brewers also face steel and aluminum tariffs that impact materials costs for brewers like Constellation Brands, which lowered long-term 2027 and 2028 guidance significantly around "the anticipated impact of tariffs."
Yahoo
13-03-2025
- Business
- Yahoo
Trump threatens Europe with 200 percent tariff on wine, Champagne
President Trump on Thursday threatened to put a hefty 200 percent tariff on wine, Champagne and other alcohol coming in from Europe if the European Union (EU) does not remove a tariff on whiskey. 'The European Union, one of the most hostile and abusive taxing and tariffing authorities in the World, which was formed for the sole purpose of taking advantage of the United States, has just put a nasty 50% Tariff on Whisky,' Trump said on Truth Social. 'If this Tariff is not removed immediately, the U.S. will shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES. This will be great for the Wine and Champagne businesses in the U.S.' he added. A trade war with Europe was escalated Wednesday when Trump's 25 percent tariffs on steel and aluminum took effect, leading the EU to swiftly retaliate with a two-step approach. The European trading bloc, which is made up of 27 nations, said it will allow the suspension of existing 2018 and 2020 countermeasures against the U.S. to expire April 1. That would allow for 50 percent tariffs on American whiskey, which were suspended, to automatically go into effect. Second, the commission is proposing a new package of countermeasures on goods coming from the U.S. that will go into effect in mid-April, covering some $28 billion in imports in total. Chris Swonger, CEO of the Distilled Spirits Council, urged Trump to make a deal with the EU before further escalation. 'The U.S.-EU spirits sector is the model for fair and reciprocal trade, having zero-for-zero tariffs since 1997,' he said in a statement to The Hill. 'We urge President Trump to secure a spirits agreement with the EU to get us back to zero-for-zero tariffs, which will create U.S. jobs and increase manufacturing and exports for the American hospitality sector. We want toasts not tariffs.' Swonger on Wednesday warned that a European whiskey tariff would be 'very, very devastating.' 'We've just gotten the news early, early this morning, that the [EU] is poised to put a 50 percent tariff on American whiskey. That will be very, very devastating,' Swonger told NewsNation's Nichole Berlie. Trump has also imposed tariffs on China, Canada and Mexico, but has since announced exemptions for auto parts and goods that fell under the U.S.-Mexico-Canada trade agreement he signed in 2020. The stock market has experienced a downturn as a result of Trump's widespread tariffs, which has helped fuel anxiety the nation could slide into a recession. Updated at 10:06 a.m. EDT Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
CNN
12-03-2025
- Business
- CNN
US spirits industry warns of ‘debilitating' retaliatory whiskey tariffs from Europe
The US spirits industry is bracing for pain after the European Union targeted American whiskey in retaliation against President Donald Trump's steel and aluminum tariffs. The EU's decision to spike tariffs on American whiskey to 50% is 'deeply disappointing and will severely undercut the successful efforts to rebuild US spirits exports in EU countries,' Chris Swonger, CEO of the Distilled Spirits Council of the United States (DISCUS), said in a statement released Wednesday. Ignited by the pandemic, sales of American whiskey have grown nearly 20% since 2020 — topping more than $5 billion last year, according to the council's economic data. Sales of whiskey and other spirits softened, however, in 2024 as people dialed back their drinking amidst the rising cost of living. As a result, some companies, like Brown-Forman, laid off about 700 employees in January. 'Reimposing these debilitating tariffs at a time when the spirits industry continues to face a slowdown in US marketplace will further curtail growth and negatively impact distillers and farmers in states across the country,' Swonger said. Europe is a growing and significant customer for US whiskey, with exports soaring over the last three years by 60% to $699 million after earlier tariffs were suspended, according to DISCUS. Trump's 25% tariff on all steel and aluminum imports started Wednesday. The EU responded to what it described as 'unjustified' tariffs by announcing countermeasures on up to $28 billion of American goods, including boats, bourbon and motorbikes. EU's retaliation starts in April. 'We urge the US and EU governments to come to a resolution that gets our spirits industry back to zero-for-zero tariffs,' Swonger added. Last week, the CEO of Jack Daniel's whiskey maker Brown-Forman blasted the decision by officials in Canada to pull American-made spirits off store shelves in response to Trump's tariffs on Canada. 'That's worse than a tariff because it's literally taking your sales away,' Brown-Forman CEO Lawson Whiting said in an earnings call. However, he noted that Canada accounts for just 1% of the company's total sales, so the company can 'withstand' the losses. But Eric Gregory, the president of the Kentucky Distillers Association, which represents the broader spirits industry in the state, drew attention last week to the wider impact from tariffs in a statement. 'Unfortunately, the return of retaliatory tariffs on American whiskey will have far-reaching consequences across Kentucky, home to 95% of the world's Bourbon,' Gregory said. 'That means hard-working Americans – corn farmers, truckers, distillery workers, barrel makers, bartenders, servers, and the communities and businesses built around Kentucky Bourbon will suffer.' Shares of spirits companies fell in midday trading, with Brown-Forman (BF.B) dropping nearly 7%, Remy Cointreau falling about 4% and Diageo (DEO) slipping nearly 2%
CNN
12-03-2025
- Business
- CNN
US spirits industry warns of ‘debilitating' retaliatory whiskey tariffs from Europe
The US spirits industry is bracing for pain after the European Union targeted American whiskey in retaliation against President Donald Trump's steel and aluminum tariffs. The EU's decision to spike tariffs on American whiskey to 50% is 'deeply disappointing and will severely undercut the successful efforts to rebuild US spirits exports in EU countries,' Chris Swonger, CEO of the Distilled Spirits Council of the United States (DISCUS), said in a statement released Wednesday. Ignited by the pandemic, sales of American whiskey have grown nearly 20% since 2020 — topping more than $5 billion last year, according to the council's economic data. Sales of whiskey and other spirits softened, however, in 2024 as people dialed back their drinking amidst the rising cost of living. As a result, some companies, like Brown-Forman, laid off about 700 employees in January. 'Reimposing these debilitating tariffs at a time when the spirits industry continues to face a slowdown in US marketplace will further curtail growth and negatively impact distillers and farmers in states across the country,' Swonger said. Europe is a growing and significant customer for US whiskey, with exports soaring over the last three years by 60% to $699 million after earlier tariffs were suspended, according to DISCUS. Trump's 25% tariff on all steel and aluminum imports started Wednesday. The EU responded to what it described as 'unjustified' tariffs by announcing countermeasures on up to $28 billion of American goods, including boats, bourbon and motorbikes. EU's retaliation starts in April. 'We urge the US and EU governments to come to a resolution that gets our spirits industry back to zero-for-zero tariffs,' Swonger added. Last week, the CEO of Jack Daniel's whiskey maker Brown-Forman blasted the decision by officials in Canada to pull American-made spirits off store shelves in response to Trump's tariffs on Canada. 'That's worse than a tariff because it's literally taking your sales away,' Brown-Forman CEO Lawson Whiting said in an earnings call. However, he noted that Canada accounts for just 1% of the company's total sales, so the company can 'withstand' the losses. But Eric Gregory, the president of the Kentucky Distillers Association, which represents the broader spirits industry in the state, drew attention last week to the wider impact from tariffs in a statement. 'Unfortunately, the return of retaliatory tariffs on American whiskey will have far-reaching consequences across Kentucky, home to 95% of the world's Bourbon,' Gregory said. 'That means hard-working Americans – corn farmers, truckers, distillery workers, barrel makers, bartenders, servers, and the communities and businesses built around Kentucky Bourbon will suffer.' Shares of spirits companies fell in midday trading, with Brown-Forman (BF.B) dropping nearly 7%, Remy Cointreau falling about 4% and Diageo (DEO) slipping nearly 2%
