Trump Tariffs Could Hit Close To Home For Whiskey Congress Podcast
The latest episode of the Whiskey Congress Podcast included discussion of the tariffs imposed by President Trump on steel and aluminum from certain countries. Now there is word that the tariffs could lead to retaliation by European nations in the form of tariffs on American goods including whiskey. These tariffs (if imposed) would increase the cost of American whiskey in Europe potentially leading to reduced demand abroad. Lovers of good whiskey are all too aware that worldwide demand for whiskeys has increased dramatically over the past several years. Reduced foreign demand only means one thing…more bourbon for me.
The steep tariffs on imported aluminum and steel that President Trump proposed last week has some industries that rely on those products worried. But it’s not just companies that use those metals directly. American whiskey makers see trouble ahead, too, thanks to a pointed speech from EU trade commissioner Cecila Malmström yesterday in which she proposed retaliatory taxes on American goods including bourbon, denim, bicycles, peanut butter, orange juice, and motorcycles.
Those products might seem like a random assortment, but they’re specific swipes at various lawmakers. Bourbon, of course, is made in Senate majority leader Mitch McConnell’s home state of Kentucky. Orange juice is a bumper product for the swing state of Florida.
In response, the maker of Jack Daniel’s and Woodford Reserve, Brown-Forman Corp., released a statement strongly opposing the tariffs. “Brown-Forman could be an unfortunate and unintended victim of the policy,” CEO Paul Varga told Bloomberg. “The overwhelming majority of our products are made here in America, and over the last few years… we’ve been investing heavily in our American manufacturing expansion.”
A European whiskey tax would be onerous for Brown-Forman, given how well their brands sell internationally. “We’re going to monitor the potential for retaliatory tariffs closely,” Varga said. “And of course, we’re sharing our point of view in Washington, as well.”
