whiskey tariffs exports augmentation

U.S. whiskey distilleries brace for 25% increase in tariffs

Collateral damage to distilleries continues in the wake of the Trump-EU disputes, this time affecting American whiskey.

As Scots raise a glass to celebrate this month’s removal of tariffs on Scotch whisky imported into the U.S., American whiskey distilleries have to prepare for the future.

Until now, distilleries exporting whiskey to Europe and the UK faced a 25% tariff on their spirits. But for the distilleries’ bitter pill, they will have to face a 50% tariff as of June. That is double what was already being imposed on them.

“We are literally freezing,” said Amir Peay of E.Pepper Distillery in Lexington, Kentucky. In his case, the new tariff comes just as he began investing to take advantage of rising sales in Europe.

The problems plaguing U.S. whiskey makers reflect both the complications of global trade and the inclination of opposing sides to target flagship products in disputes. The United States imposed tariffs on Scotch whisky and French wine, and the Europeans taxed Harley-Davidson motorcycles and U.S. whiskey. Although the underlying disputes had nothing to do with those products.

Via The Wall Street Journal


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