Bad news for cocktail drinkers: “Tariff hikes are still causing widespread disruption within the alcohol industry”
A raft of new tariffs on alcohol will be felt across the country, potentially changing which drinks are found on menus.
In his first year in office President Donald Trump made good on his promise to enact widespread tariffs on imports from countries around the world. Now, the American people are starting to feel the consequences.
A raft of new alcohol tariffs are pushing up prices, affecting which drinks are seen on menus. Many of the wines and spirits sold in the United States are imported and are therefore affected by the new tariffs.
“Tariffs are certainly going to continue to impact the bar and cocktail industry in 2026,” said Alex Jump, director of operations and owner at Denver’s The Peach Crease Club. “The majority of the items we sell at the bar are international.”
Jump said that his bar is not considering removing items from the menu. However that leaves the unenviable options of raising prices for customers or sacrificing the viability of the business.
Bars and restaurants feel the squeeze
Cocktail drinkers will be particularly affected with tequila, Scotch whisky and amaro among the most popular cocktail ingredients. These drinks cannot easily be recreated in the U.S, meaning that sellers simply have to pay the higher prices, or take the products from their menus.
The increase in prices is not restricted only to drinks, with other items like glassware, furniture and plastic goods often coming from outside the United States. In the fine margins of the hospitality industry, even a modest increase in unit price can wipe out a company’s profits.
“Tariff hikes are still causing widespread disruption within the alcohol industry,” said Marbet Lewis, Sprint Law Partners’ founding attorney. Lewis added that she is already working with retailers who have shifted their menus to remove increasingly-expensive imported drinks.
Looking to the long-term, there is concern that a major hit to the hospitality sector would be keen felt in other industries. Bars and restaurants are often a hub in local communities, a big economic driver for suppliers and farmers, and a major source of employment. Vic Christopher, president and founder of Clark House Hospitality in Troy, New York, explains: “When a restaurant fails, everyone takes a hit.”
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