DISCUS, AWA Respond to Supreme Court Tariffs Ruling
The Supreme Court struck down President Donald Trump’s sweeping tariffs on Friday, ruling that the tariffs were unconstitutional, The Associated Press and numerous other news outlets reported.
The court ruled 6-3 on the issue, saying it is clear in the U.S. Constitution that the Executive Branch has no power in taxing; that power falls to Congress. It is at least a temporary blow to the president’s agenda since taking office.
For spirits producers, it offers hope that the lost exports – which has been damaging to spirits producers, including bourbon distilleries. The Distilled Spirits Council of the United States (DISCUS) has been vocal in opposing Trump’s tariffs, asking instead for a continuation of the zero-for-zero tariffs previously in place with trading partners.
“As the administration navigates the implications of the Supreme Court’s decision, we urge them to take this opportunity to secure a permanent return to zero-for-zero tariffs on spirits products with our major trading partners, such as the EU and U.K.,” DISCUS said in a prepared statement Friday. “The elimination of tariffs on distilled spirits would provide much needed certainty for American spirits exporters while helping ease financial pressures on bars, restaurants and retailers at a time when affordability remains a major concern for consumers.”
Additionally, the American Whiskey Association (AWA) responded that the court’s decision “creates an important opportunity to reset and get trade policy right.”
AWA President & CEO Michael Bilello, in a prepared statement, went on to say, “American whiskey depends on fair treatment, open markets, and a stable global trading environment to compete and to support American jobs — from distilleries and farms to hospitality and export partners around the world. We urge the administration to move swiftly to eliminate retaliatory tariffs on distilled spirits and to pursue durable trade agreements that provide long-term certainty. American whiskey — and the broader spirits and hospitality sectors — thrive when trade policy is predictable, reciprocal, and growth-oriented.”
Prior to the Trump presidency, DISCUS reported early last year, U.S. exports in 2024 hit a record $2.4 billion, driven by a 39% increase in exports to the European Union.
Critics of the tariffs argued that costs would be absorbed by U.S. producers and consumers. The AP reported yesterday that a new J.P. Morgan study showed that tariffs paid by midsize U.S. businesses tripled last year, causing economic disruption.
Image via Mark Thomas/Pixabay
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