President Trump is strongly considering a 10% tariff on all foreign goods, which he believes will bring back more manufacturing to the U.S. and build a stronger domestic economy. To illustrate he points to an auto manufacturer that manufacturers in Mexico and imports to the U.S. If the auto manufacturer is going to receive the benefits of selling to the U.S. market, it must pay a 10% tariff as a punishment for not utilizing American assembly workers.

We can debate whether tariffs are good or bad, but today I don’t want to handle that issue. What I want to discuss is why tariffs should not apply to liquor.

Applying tariffs to foreign liquor does not aid the Trump policy of punishing companies that could use American workers to manufacturer goods but instead chooses cheaper foreign labor.

A top-of-the-line Bordeaux really can’t be produced in Cleveland and champagne can’t be produced in Flint, Michigan.

For many types of alcohol like champagne, and tequila, they must be produced in specific regions of France and Mexico. These designations are legally protected and producing champagne or tequila somewhere else will force the product to lose its designation.

Try producing Irish whiskey outside of Ireland, it is no longer called Irish Whiskey.

The fact is many producers of foreign wine and spirits unlike other consumer goods don’t maintain the ability to bring production to the United States. Unlike other consumer goods like automobiles, these products aren’t afforded that luxury.

Since there is no impact tariffs can have in bringing production back to American shores, what is the end game?

Is it to make American wine and spirits more attractive? If that is the case reform could start by asking wholesalers why the majority of the products are from foreign countries? But I don’t think that is a good solution to force purchasing habits.

The real victims are the sellers of and consumers of foreign products. A great Bordeaux, tequila, or Irish Whiskey can’t be replicated by American manufacturers, so making the market more expensive to access and on the consumer side more expensive to purchase will lead to less money being spent in the marketplace. This is especially true if the American wine or spirits are not a plausible substitute.

With the goal of punishing companies for not utilizing American workers to produce products off the table, the position on punishing them with tariffs should not be an option.

Liquor is just different than the rest and should be treated accordingly.