Spirits Industry Tariffs Loom as July Deadline Approaches

The spirits industry tariffs debate has reignited as the US braces for the end of a key tariff delay. Set by former President Donald Trump in April 2020, a temporary pause placed a 10% tariff baseline on imports from all countries. That delay officially expires on July 9, 2025, and stakeholders across the spirits sector are preparing for major ripple effects.

During a June 25 webinar hosted by the Distilled Spirits Council of the US (Discus), leaders from the barrel, glass, and cork sectors outlined how renewed tariffs could reshape operations and disrupt supply chains once again.

Barrel Makers: Managing Uncertainty and Rising Costs

Melissa Zoeller, executive director of the Associated Cooperage Industries of America, emphasized how uncertainty undercuts cooperage operations. “Cooperages thrive on predictability,” Zoeller explained, according to The Spirits Business. She pointed out that tariffs, along with rising steel costs—now roughly 4% of a barrel’s price—make forecasting difficult.

To adapt, some producers now repair used barrels rather than buy new ones. Others have begun shifting production timelines or hedging demand by stockpiling inventory. Zoeller warned that higher tariffs might push international buyers toward alternative materials or suppliers, especially if American oak or Bourbon barrels become cost-prohibitive.

“Just the mere threat of tariffs creates uncertainty,” Zoeller added. “Buyers are diversifying supply chains and signing longer-term contracts to stabilize pricing and availability.”

Glass Bottles: Domestic Growth, International Friction

The glass segment still feels the aftershocks of pandemic-era delays, when cargo bottlenecks left spirits bottles stranded offshore. Bryan Vickers, consultant for the Glass Packaging Institute, said this lesson emphasized the importance of regional manufacturing.

“New plants in Georgia and Kentucky, plus facilities in Mexico, are now key to meeting bottle demand,” Vickers explained. “We support a balance between strong domestic capability and fair trade. Broad-based tariffs—especially the EU’s 10% tariff—harm both our customers and us.”

However, Vickers also noted that tariffs targeting China helped prevent unfair undercutting of US producers, making selective trade policies more strategic than blanket ones.

Cork Industry: Seeking Fair Classification

For cork suppliers, the primary battle lies in classification. Patrick Spencer, executive director of the Natural Cork Council, said cork remains excluded from the US tariff exemption list—even though the Department of Agriculture classifies it as a wood product.

“Our industry operates on an on-demand model. When cork trees mature, they must be harvested—there’s no hitting pause,” Spencer noted. “It was basically an oversight that cork didn’t make the exemption list. We’re working to correct that.”

Public Pressure Builds: ‘Toasts Not Tariffs’ Campaign Gains Momentum

As the July 9 deadline approaches, the Toasts Not Tariffs coalition has mobilized industry and consumer support. Representing 57 organizations across the three-tier alcohol supply chain, the coalition has gathered more than 19,000 petition signatures demanding a return to zero-for-zero spirits industry tariffs with key trade partners.

In a unified statement, the coalition urged the Biden administration to lead on trade agreements that protect the hospitality industry and expand exports. “From barrel makers to bartenders, our message is clear—we want toasts, not tariffs.”

What’s Next for the Spirits Industry Tariffs Fight?

While no major disruptions have occurred yet, producers remain on edge. Uncertainty continues to drive preemptive adjustments, from contract negotiations to supply chain restructuring. As the spirits industry tariffs countdown ticks closer, all eyes are on Washington to see if diplomacy can prevent further strain on a sector still recovering from past trade and logistics upheavals.