Distilled Spirits Council Sought Cognac Tariff Repeal
Importers of European cognac and liqueurs may see costs drop if lobbying efforts to remove the 10% tariff succeed.
Updated on Oct. 13, 2026 in International Trade
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The Distilled Spirits Council has requested that President Trump eliminate the 10% tariff currently imposed on European cognac and liqueurs. This push follows the administration's recent removal of similar import taxes on Irish and Scotch whiskies.
Why it matters
The industry is lobbying to decouple spirits from broader trade disputes, arguing that trade deficit metrics should not apply to products with specific geographic production requirements. Removing these tariffs could lower procurement costs for U.S. distributors and hospitality operators.
The U.S. currently maintains a 10% tariff on cognac and liqueurs, which the Distilled Spirits Council seeks to eliminate. This follows the recent removal of identical 10% tariffs on Irish and Scotch whiskies.
The players
Distilled Spirits Council
A national trade association representing producers and marketers of distilled spirits that lobbies on federal trade and tax policy.
President Donald Trump
The current President of the United States who holds executive authority over trade policy and the imposition of import tariffs.
The details
The Distilled Spirits Council is actively presenting arguments to the White House, the Commerce Department, and the U.S. Trade Representative to shift trade policy. The Council contends that spirits with strict geographic production requirements are unfairly used as leverage in broader trade disputes. For operators, any reduction would represent a direct margin improvement on European imports.
Timeline
September 2026: President Trump removed the 10% tariff on Irish whiskey.
October 13, 2026: The industry request for the repeal was reported.
Market Landscape
The Council is challenging the administration's trade deficit-based tariff policy by specifically targeting products with geographic production requirements. This follows a pattern of successful lobbying that resulted in the removal of duties on Scotch and Irish whiskies earlier this year.
Hospitality operators and retailers should prepare for potential price volatility in European spirits as lobbying efforts intensify. If you manage inventory, monitor these policy discussions to time your procurement or hedge against future shifts in import duty costs.
The takeaway
The industry signal to watch is the administration's willingness to grant exemptions for geographically protected imports, as these are often used as trade leverage. Operators should monitor trade policy updates from the U.S. Trade Representative to adjust their inventory strategies accordingly.
Further reading
For more on federal trade policy shifts, visit the International Trade section.
Source note: This article includes information reported by WMAL-FM.
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