Alcohol & Tariffs: Things are about to get REALLY expensive $$
- Alexi Fisher
- Apr 19
- 5 min read
No matter which side of the isle you fall on, if you are a lover of spirits and cocktails or work behind the bar, this is going to affect you.
You know that sinking feeling when your favorite bottle of Scotch, mezcal, or Japanese whisky suddenly costs $10 more—or worse, disappears from the shelves altogether? You can thank tariffs for that. While most people view tariffs as dull economic policy (somewhere between “tax codes” and “airport security wait times”), they actually play a crucial role in the world of spirits. Tariffs can completely alter bar selections, halt international sales, and quickly drive up the cost of your cocktails.
Whether you’re a bar professional, brand representative, casual drinker, or industry enthusiast, it’s time to familiarize yourself with these behind-the-scenes price influencers. When spirits cross borders, they don’t just bring flavor; they also bring politics, paperwork, and price increases.
Let’s be honest: discussing the forces shaping the global spirits market, tariffs don’t exactly scream “cocktail party topic.” But they should. These hidden taxes can affect your bar tab, inventory orders, and cocktail pricing—whether you realize it or not. Whether you’re a curious newcomer trying to understand why your favorite mezcal is backordered or a seasoned bar manager putting together a spirits list, knowing how tariffs work is an essential tool in your kit. Tariffs not only impact the cost of your drinks—they also shape the global flow of alcohol.
So, what exactly is a tariff? And why should it matter to anyone who pours, drinks, or dreams about spirits?
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What Is a Tariff, Anyway?
Tariffs are taxes imposed by governments on goods imported from other countries. Their purpose is to protect domestic producers, penalize international competitors, or generate additional revenue for the government.
In the spirits industry, where the origin of a product is crucial—think Scotch, Cognac, and Tequila—it's not possible to simply relocate production to evade these fees. As a result, when tariffs increase, the price of that bottle also rises. This increased cost is passed down the chain from importers to distributors to bar owners and ultimately to consumers. So, that last drink just became more expensive, and it's not due to the limes.
A Quick History of Spirited Tariff Drama
In recent years, we have seen how quickly political tensions can affect the beverage industry. In 2018, the United States and the European Union entered into a tariff dispute over unrelated aerospace subsidies, which unexpectedly impacted the spirits market. The U.S. implemented a 25% tariff on single malt Scotch, Irish whiskey from Northern Ireland, and liqueurs such as Chartreuse and Grand Marnier. In retaliation, the EU imposed tariffs on American whiskey, bourbon, and rye.
The consequences were significant: - U.S. whiskey exports to the EU fell by nearly 29% between 2018 and 2021. - Small distillers struggled to maintain profit margins and access to markets. - Many bars began to replace affected imports with domestic alternatives. Fortunately, in 2021, the U.S. and the EU reached a truce and suspended many of these tariffs. However, the damage had already been done, and just because the situation is calm now doesn't guarantee it will remain stable in the future.
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Winners, Losers, and Menu Makeovers
Tariffs have a funny way of creating unexpected winners. When imported products become too expensive or complicated, bars and retailers explore lesser-known bottles or regional alternatives.
Here’s how the dominoes fall:
• Losers: Heritage producers relying on exports, small distributors with tight margins, and anyone craving a dram of Islay Scotch at a reasonable price.
• Winners: Domestic brands, small-batch distillers, and spirit categories that fly under the tariff radar—think American brandy, Canadian whisky, and obscure liqueurs with no EU connection.
Bars that leaned into local and regional spirits thrived during tariff chaos by offering quality alternatives and telling better stories about what’s in the glass.
Why Should You Care?!
Because this isn't just an importer problem.
If you're a spirits lover, tariffs shrink your options and increase prices. Suddenly, that beautiful single malt or cult-favorite mezcal becomes harder to find—or costs more than you want to spend.
If you're a bar guest, it means fewer global offerings, higher cocktail prices, and bartenders who have to explain why the Negroni with "real" Campari is now $17.
And if you're a bartender or bar owner, you're constantly adjusting—your pricing, product mix, and guest education. Tariffs don't just affect what you stock; they change how you serve, sell, and stay profitable.
So, what can you do?
• Support local and independent brands who get hit hardest.
• Support small business that are providing education to be better consumers.
• Ask questions—to your reps, your bartenders, your policymakers.
• Stay educated. Understanding the system makes you a better drinker and a sharper advocate.
If we want a vibrant, diverse, and accessible spirits and cocktail world, we have to know when and how it's being squeezed.
What This Means Behind the Bar (and on the Bar Tab)
For industry professionals, tariffs aren't just abstract policy—they're real-world challenges that demand creativity and agility. Whether you're behind the stick or building a seasonal cocktail menu, here's how to stay ahead:
• Adapt Your Inventory. Keep a rotating list of suppliers and stay flexible with product swaps.
• Educate Your Guests. If a favorite bottle disappears or the price jumps, offer transparency and a good alternative.
• Support Local. When international spirits take a hit, it's a great time to spotlight homegrown producers.
• Stay Informed. Tariff news moves fast. Knowing what's on the horizon helps you prep your ordering, pricing, and storytelling.
And for guests? Ask your bartender questions(respectfully). If a cocktail costs more than last year, there might be more behind it than inflation.
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Beyond the Bar: Why It Matters
This is more than just a pricing strategy. The global spirits industry supports farmers, glassmakers, distillers, warehouse workers, exporters, and hospitality pros in every corner of the globe. The ripple effects hit people—not just products- when a trade war flares up.
As mixers, makers, and consumers , we're all part of this global web and we need to understand how the economics of alcohol actually work. Doing so, we become better storytellers, sharper educators, and more responsible advocates for the spirits we love.
So the next time you sip on that beautifully aged Cognac, a lush Highland Scotch, or a bright reposado tequila, remember: that bottle crossed borders, dodged taxes, and maybe even made it through a trade war just to land in your hands.
Drink it with respect. Price it with knowledge. And pour it with purpose.
Cheers🍹🥂🍺
Written and Researched by Alexi Fisher.
Alexi is an 18 year bartender/mixologist veteran, spirits educator and cocktail historian. She is the owner of the Cocktail Collective and is working on her 2nd cocktail book with hopes to self publish by October 2025.
Follow her on Instagram: @melanated.mixologist
Contact for collaboration: Afisher@cocktailcollect.com
Sources:
• Distilled Spirits Council of the United States. “Tariffs on U.S. Spirits.”
• BBC News. “US tariffs on Scotch whisky to be suspended.”
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