American distilleries are warning consumers of the economic domino effect as other countries are beginning to place retaliatory tariffs on the US beverage industry.
Tennessee’s whisky spirits warned of long-term implications for American spirits and hospitality industries during President Trump’s tariff war with US allies.
David Suk, American Craft Distiller and co-founder and CEO of Saint Luna, said tariffs could raise consumer prices. Lower consumer spending means low revenue from domestic distilleries that are not in Big-Box liquor stores.
“I think if the average consumer has to go out to their favorite restaurant, or if St. Luna has to choose to pay rent or try to pay rent, then they’ll pay rent,” Suk said.
Offshore production is inevitable for Phil Pritchard, president and master distillery of Pritchard. Pritchard said he sources bottles from China.
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A few craft distillers in stock in glass bottles from China ahead of Trump’s tariffs. (Fox News/Fox News)
Pritchard refilled 36,000 custom glass bottles when he “sees what was written on the wall” ahead of Trump’s tariffs. He told him the bottle should continue to produce for about a year.
“We are very destined to stay in China as China can offer us custom made bottles at reasonable prices,” Pritchard said. “Technically, we beat the tariffs,” Pritchard said.
American whiskey soon became targets of retaliatory tariffs against several Canadian provinces, including Ontario, Manitoba and Nova Scotia, further protesting Trump’s tariffs in early March by pulling American spirits off the shelf.
Phil Pritchard, president and master distillery at Pritchard’s distillery in Kelso, Tennessee, is looking at the first stages of his rum manufacturing process to raise the hurdles for craft distillers like him. (Fox News/Fox News)
A Canadian government-owned liquor store tossed American brands, including Uncle’s closest premium whiskey. CEO Fawn Weaver believes retaliation is worse for Canadians than Americans.
“To put our products on the shelves, they’ve already paid us for it. Now they’ve pulled it off the shelves, so they’re not going to make any money from it,” Weaver said.
My uncle’s nearest premium weekie was one of the American labels that came off the shelf of Canadian liquor stores in Manitoba, Ontario and Nova Scotia. (Fox News/Fox News)
Weaver said Crown Royal, a Canadian whiskey, was the best-selling whiskey in the United States, which encouraged Americans to buy American labels for the time being.
Trump’s 25% of all steel and aluminum imports will be effective, prompting retaliation against Europe
Historically, the US has enjoyed zero tariffs on distillation spirit in countries such as Mexico, Canada and the European Union.
According to the US Distillation Spirits Council, since 2021, EU 25% tariffs on American whiskey have been suspended during a steel and aluminum dispute with the US.
Spirit’s transatlantic trade rose nearly 450% during this period.
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The EU reimposed US whiskey tariffs on 50% on April 1st.
“Our industry will do our best to encourage all governments involved to truly leave this industry. We deserve or not deserve any secondary damage,” said Discus CEO. “Toast, not customs.”
Distillers said Crown Royal, a Canadian whiskey, is the best-selling whiskey in the United States, where Americans who buy American labels hope to keep domestic craft stills in business.
