TTB, Tariffs, and Tourism
How many times have you appreciated, praised, and publicly supported regulators?
That’s exactly what WineAmerica just did as part of a coalition of trade associations representing the alcohol beverage sector, including our colleagues at Wine Institute and others representing beer, spirits and the wholesale areas. Together, beer, wine and spirits contribute $935 annually to the US economy.
Sometimes we disagree, but not on the importance and professionalism of the Tax and Trade Bureau (TTB). From licensing to label approvals and trade issues, TTB’s coordinated federal regulation promotes efficiency and consistency compared with the possibility of 50 different systems created by the states. While it’s true that the states still regulate some aspects, such as direct-to-consumer shipping, the federal framework is vital in preventing total chaos.
Our coalition wrote to Treasury Secretary Scott Bessent asking that he “ensure that TTB continues to operate as a separate Bureau under the jurisdiction of the Department of the Treasury with adequate resources and staffing.” The request reflects concerns about major staffing and other cutbacks at government agencies being pursued by Elon Musk’s Department of Government Efficiency (DOGE).
WineAmerica has historically had a close working relationship with TTB, always advocating for sufficient funding, and we are hoping to again meet with their leadership in a month during our annual DC Fly-In—if they’re still there.
Another vital coalition is “Toasts Not Tariffs”, which recently issued a statement explaining the damage that widespread tariffs will do to the American wine, beer, and spirits sectors, along with the many other businesses that depend on them. The statement is in today’s “Bonus Info” section at the end, and is an example of the information that WineAmerica members receive on a weekly basis. (NEWSFLASH: After imposing worldwide tariffs on “Liberation Day” in April, causing a stock market crash, on Wednesday President Trump paused them for 90 days, spurring a major market rally, which quickly reversed on Thursday when reality set back in. This combination of volatility and uncertainty is another reason WineAmerica opposes tariffs under any Administration.
Meanwhile, as expected due to the tariff war and other factors, Canadian tourism to New York State in February was down—by 21%—and is expected to get worse in the coming months. While New York and other border states across the country will be hit hardest, the effects are expected to be felt in many other places far away, like California, Florida, South Carolina, and Texas. Given the huge economic “multiplier effect” of tourism, this could bring major negative consequences.