When the Supreme Court told President Donald Trump he couldn't legally use emergency powers to keep his sweeping import tariffs in place, a lot of people in the spirits industry took a breath. Maybe, they thought, this was the moment things would settle down. Maybe trade policy would get back to something resembling normal.
That breath didn't last long.
Within days of the February 20 ruling, Trump announced on Truth Social that he was moving forward with a new 15% global tariff, this time using a legal avenue that had never actually been tested before — a rarely invoked statute known as Section 122. The law allows a president to impose tariffs of up to 15% for a period of 150 days, and Trump wasted no time pulling the trigger on it.
Trump called the Supreme Court's decision "ridiculous, poorly written, and extraordinarily anti-American," and made clear he had no intention of backing down. In his post, he wrote: "During the next short number of months, the Trump administration will determine and issue the new and legally permissible tariffs, which will continue our extraordinarily successful process of making America great again – greater than ever before."
So instead of a moment of relief, the industry found itself staring down an even steeper wall.
The backstory here matters. Back in April 2025, Trump rolled out a broad economic plan that put a baseline 10% tariff on imports from nearly every country in the world. That policy hit the spirits industry hard almost immediately. The Scotch Whisky Association reported a 15% drop in bottles of Scotch shipped to the United States since that original 10% tariff kicked in. That's not a small number. That's a meaningful hit to one of the most recognized premium import categories on American shelves.
Now, with the rate climbing to 15%, the question isn't just about Scotch. It's about the entire landscape of imported spirits, the bars and restaurants that pour them, and the American consumers who buy them.
Welsh whisky producer Penderyn was among the first to publicly push back on the new tariff announcement. The company, which has been one of the more visible symbols of the UK's craft distilling revival, warned that the policy threatens jobs, investment, and the broader momentum that small distillers have been building. Products from the UK have already been subject to the 10% duty since May, and the bump to 15% compounds an already difficult situation.
Stephen Davies, chief executive of Penderyn, did not mince words. "This is bad news for Welsh whisky and the entire premium malt sector, which is still recalibrating after a turbulent year," he said. "It's equally bad news for the US liquor business, which will see higher prices and fewer choices."
That last point deserves some attention, because it often gets lost in the political back-and-forth. Tariffs on imported spirits don't just affect the foreign producers trying to sell their products in America. They filter down through the entire chain — the importers, the distributors, the wholesalers, the retailers, and eventually the guy standing at a bar or walking through a liquor store trying to decide what to bring home. When the cost of doing business goes up, those costs tend to find their way to the customer.
The trade organizations that represent the American spirits industry understood this, and they responded to the Supreme Court's initial ruling with something close to optimism. For a brief window, they saw a chance to push for something better than the status quo — not just a return to 10% tariffs, but a genuine elimination of duties across the board.
Chris Swonger, president and CEO of the Distilled Spirits Council of the United States, known as Discus, called on the administration to seize the moment. "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 UK," he said. "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."
That framing is important. The American spirits industry isn't just on the receiving end of this fight. American whiskey exports depend on open markets abroad just as much as imported spirits depend on access to the US market. When trade tensions escalate, the retaliation tends to be mutual, and American distillers end up paying a price on the international stage even as foreign producers pay a price here at home.
The Wine and Spirits Wholesalers of America echoed that concern. Francis Creighton, the organization's president and CEO, welcomed the Court's original decision, pointing out that "certainty and predictability in trade policy are essential" for the businesses that move product from producers to consumers. Creighton said the ruling had restored clarity that would "help to stabilise an industry that depends on open markets and longstanding international partnerships."
Michael Bilello, president and CEO of the American Whiskey Association, put it plainly. He said the Court's decision "creates an important opportunity to reset and get trade policy right," and called on the administration to act quickly. "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," Bilello said. "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."
That window, at least for now, appears to have closed.
What makes the current situation particularly complicated is that the tool Trump used to implement the new 15% tariff — Section 122 — has never actually been invoked before. It's untested legal ground, and the 150-day clock on the tariffs means this is, by design, a temporary measure. The administration has said it will use that time to work out what it considers legally permissible long-term tariff structures. In other words, the fight isn't over. It's just entering a new phase.
For anyone who enjoys a pour of Scotch after a long day, or who has been following the rise of Welsh single malts, or who simply likes having choices at the bar, the next several months will be worth watching closely. The 150-day window Trump has opened under Section 122 is essentially a countdown clock — one that will determine what the trade landscape looks like on the other side.
The spirits industry, both here and abroad, is in a holding pattern. Prices may rise. Selection may narrow. Smaller craft producers, already operating on tight margins, will feel the pressure most acutely. The craft distilling revival that has been building in places like Wales — and in plenty of American states as well — depends on stable conditions that make long-term investment worthwhile.
None of that is guaranteed right now. What is certain is that the tariff war is far from finished, the legal battles are likely to continue, and the people most directly affected — the distillers, the retailers, the bar owners, and the customers — are the ones left waiting to find out what comes next.
