As representatives of the U.S. hospitality sector, we fully support your goals of promoting U.S. job growth, manufacturing and strengthening the U.S. economy. The U.S. spirits and wine sectors produce wine and spirits in every state, supporting more than 3.5 million jobs and generating $476 billion in annual economic activity. These products are vital to the restaurant and hospitality industry, which employs 15.7 million people nationwide.  

Wine and spirits are high value-added agricultural products that support businesses across the country, from farmers growing crops on more than 1 million acres of farmland to transportation, distribution, bottling, packaging, marketing, finance, restaurants, bars, taverns, small package stores and grocery outlets.  

Wine and spirits are unique products, often tied to specific geographical regions. Some spirits are recognized as “distinctive products” by the U.S. and our trading partners and can only be made in their designated countries—Bourbon and Tennessee Whiskey in the U.S., Tequila in Mexico, and Cognac in France. Similarly, wine is linked to its place of origin through appellations of origin or geographical indications. Consequently, production of these products cannot simply be relocated to avoid tariffs. 

Our sectors stand as a model of mutually beneficial trade, and the livelihoods of those working within it depend heavily on international trade. Most U.S. wine exports go to countries with low or zero import duties. Nearly 85% of U.S. spirits exports go to countries that have eliminated tariffs on all U.S. spirits, and approximately 98% of spirits imports originate from countries that have eliminated tariffs on U.S. spirits. Continued access to global markets creates jobs, supporting rural and urban communities. 

Unfortunately, our industry has been embroiled in trade disputes with many of our top trading partners unrelated to our sectors. The damage to the U.S. hospitality sector resulting from tariffs on wines and spirits will have lasting, negative impacts.  

We estimate that a 10% tariff on imported wine and spirits could result in more than 38,000 American job losses and nearly $3.3 billion in lost sales. A 20% U.S. tariff could cost 74,000 jobs and nearly $6.2 billion in lost sales. And the numbers only increase as the tariffs do. 

As part of your America First Trade Policy, we seek your leadership to secure fair and reciprocal tariff-free trade with our key partners, which will lead to an increase in U.S. wine and spirits exports, investments, and U.S. job growth. Simply put, we need toasts, not tariffs.