Tennessee whiskey distillers are sounding the alarm regarding potential long-term effects stemming from President Trump’s ongoing tariff war. They contend that American craft distillers have become ‘collateral damage’. With rising tariffs causing consumer prices to soar, demand for local distillers may falter, leading to reduced sales, especially for those not featured in larger liquor establishments. David Suk of Saint Luna warns that consumers might prioritise essential expenses over leisure, impacting the spirits industry adversely.
Phil Prichard from Prichard’s Distillery faces necessity in sourcing bottles from China, having prepared proactively by acquiring 36,000 custom glass bottles before the tariffs hit. This foresight means he can continue production without undue disruption, as he remarks on the unlikelihood of changing suppliers due to cost-effectiveness. Still, he acknowledges the broader impact on American whiskey, which has become a target for tariffs.
In protest of the tariffs, several Canadian provinces have removed American spirits, including Uncle Nearest Premium Whiskey, from their shelves. Fawn Weaver, its CEO, highlights that Canadian retailers who previously stocked these brands are now losing significant revenue. She points out that Crown Royal has become the highest-selling whiskey in the U.S. and urges American consumers to support domestic brands at this crucial time.
Historically, the U.S. enjoyed zero tariffs on distilled spirits traded with Mexico, Canada, and the EU. Although the EU’s 25% tariff on American whiskey was paused during a steel and aluminum dispute, it has since been reinstated at 50%. Chris Songer, CEO of DISCUS, advocates for the industry’s protection, declaring, “Toasts, not tariffs,” as a rallying cry for solidarity among distillers, hoping to preserve the viability of local craft distilleries amidst a turbulent economic climate.
Tennessee whiskey distillers express concern over the long-term economic impacts of Trump’s tariff war, describing American craft distillers as ‘collateral damage’. Rising consumer prices could lead to reduced sales and a need for offshore production. Canadian provinces have removed American spirits in protest of the tariffs, which are further affecting revenue streams. Advocates highlight the need for support of local distillers during this challenging period.
In summary, Tennessee whiskey distillers are grappling with the fallout from President Trump’s tariffs, which threaten the economic landscape for American spirits. Distillers like David Suk and Phil Prichard express concern for consumer price hikes that might diminish sales, while Fawn Weaver highlights the financial damage to Canadian retailers pulling American brands. With tariffs meaningfully impacting trade relations, advocates like Chris Songer emphasise the need to shield the spirits industry from collateral damage caused by geopolitical disputes. Rallying cries point towards the hope that supporting local distillers will help them weather this storm.
Original Source: www.foxbusiness.com
