Squeezed by retaliatory tariffs, the spirits industry is joining a growing chorus of businesses pressuring the president to back off his trade fights.
As President Trump’s global trade war approaches a pivotal moment, American industry is trying to use Mr. Trump’s love of big economic numbers to get him to stand down.
Mr. Trump faces a series of decisions over the next several weeks about whether to ratchet up tariffs on Chinese goods, impose new duties on imports of foreign cars and keep metal tariffs on trading partners like Canada and Mexico. While Mr. Trump’s economic North Star has long been reducing the trade gap between what America exports and what it imports, industries from soybean farmers to nail manufacturers are trying to convince Mr. Trump that his policies are having the opposite effect — by dampening exports of some of America’s most cherished products.
On Tuesday, the American spirits industry joined the growing chorus of businesses and trade groups trying to get Mr. Trump to remove tariffs on Chinese goods and foreign metals by showcasing the economic pain that the trade war has inflicted.
Since the Trump administration initiated tariffs last year on foreign steel and aluminum, $763 million worth of American spirits exports have been subject to retaliatory tariffs, according to data released by the industry group. The most draconian duties have come from Europe, where the rate on American whiskey is 25 percent.
“The market is on the edge of its seat,” Chris R. Swonger, the chief executive of the Distilled Spirits Council, said in an interview on Tuesday. “We hope that the Trump administration can land the plane on these major trade agreements.”
Mr. Trump’s tariffs have exacted a toll on a range of American businesses by raising costs for imported goods and creating new trade barriers as Europe, China, Canada and Mexico retaliate with tariffs and reduced market access. Financial markets have been gyrating on signs of optimism or pessimism about the trade disputes, and economists have blamed the tariff polices for contributing to weaker economic growth and diminished business confidence.
The spirits industry data shows the trade war is stalling exports at a moment when thirst for products such as American whiskey are surging around the globe. After Canada imposed a 10 percent tariff on American whiskey on July 1, exports from distillers in the United States slowed from a 12.4 percent growth rate in the first half of the year to 8.3 percent growth after the tariffs were in place.
Global exports of American whiskey during the first half of 2018 rose 28 percent from the same period in 2017.
