January 5, 2026 | Page 18

Shippers
2026 Annual Review & Outlook
Executive Commentary
“ The industry will survive, and trade will continue, but some businesses will not withstand the costs imposed by tariffs.”
Alison Leavitt
Wine and Spirits Shippers Association( WSSA)
Alison Leavitt
Managing Director www. wssa. com
The beverage alcohol industry is often considered recession-proof and largely immune to the vagaries of economic trends and disruptions. However, it is not immune to the impact of tariffs and the resulting responses from foreign markets. The multiple headwinds created by aggressive tariff policies and the treatment of our trading partners have hit the industry hard.
While I usually focus on global deep-sea shipping in the annual outlook, this year the focus is on trade policy and its tariff impact— which have taken center stage.( Global shipping, perhaps, remains the one bright spot for shippers!) The fact that Canada has removed all US-origin alcoholic beverages from its shelves has resulted in an 85 % plunge in US spirit exports and an over 90 % drop in US wine exports. Combined, these declines have cost the US economy more than $ 400 million. As is usually the case with tariffs, small companies have borne the brunt of the damage.
In response, the beverage alcohol industry has united in a coalition representing more than 50 associations to fight the tariffs and highlight their severe impact, as well as the trickle-down effect on both importers and exporters. It is not just the wineries, distilleries or importers who suffer— trucking companies, warehouse workers, restaurants and retail outlets are all adversely affected by a downturn in trade. Similar to many industries impacted by tariffs, the beverage alcohol sector has adapted by negotiating with suppliers, exploring first-sale options and absorbing tariff costs where possible. Beverage alcohol does have one slight advantage: it is uniquely terroir-driven. The production of specific products cannot simply be relocated; whether champagne or tequila, these beverages are inextricably tied to their place of origin. Their value lies in the soil, climate and topography that make them unique. The industry will survive, and trade will continue, but some businesses will not withstand the costs imposed by tariffs.
“ As trading partners seek relief from US tariffs, some have been more willing to consider removal of longstanding barriers for US red meat.”
Dan Halstrom
US Meat Export Federation
Dan Halstrom
President and CEO www. usmef. org
Exporters of US pork, beef and lamb faced heightened uncertainty in 2025 due to the imposition of reciprocal tariffs on most trading partners. At the US Meat Export Federation( USMEF), our main concern was that these tariffs would lead to retaliation. The good news is that retaliatory measures have been mainly limited to China, but the bad news is that the impact on the US-China meat trade has been dramatic.
China’ s retaliatory duties have made US pork more expensive for Chinese importers, who are some of our largest and most reliable customers for pork variety meat items such as feet, ears, snouts and organs. And China’ s failure to renew registrations for US beef plants has effectively locked US
beef out of the market. This not only costs the US industry direct exports to China, but also the premiums generated on all beef cuts exported to Asia through competing bids from the large pool of Chinese buyers.
While the US meat industry is hopeful that these obstacles will soon be addressed, we are certainly not waiting for this outcome. USMEF has always emphasized the need for market diversification and stressed the importance of developing alternative export destinations. These efforts have taken on heightened importance, as we
look to capitalize on untapped potential in emerging regions such as Southeast Asia, Latin America and Africa. We have also ramped up promotions for cuts normally destined for China in established markets such as South Korea, Japan and Taiwan.
The upside of this situation is that as trading partners seek relief from US tariffs, some have been more willing to consider removal of longstanding barriers for US red meat. While closing these deals certainly will not be easy, our industry stands ready to capitalize on new opportunities.
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16 Journal of Commerce | January 5, 2026 www. joc. com