New tariff won’t augur well with Kentucky Bourbon

New tariff won’t augur well with Kentucky Bourbon

The prized Kentucky Bourbon is all set to become dearer. With the US government revising existing policies and imposing 25 % and 10 % tariff on steel and aluminium respectively, trade relations with Mexico, Canada, and the European Union are bound to be affected. 

This move by the US comes as a part of the President’s latest "America first" policy. In retaliation, the European Union has decided to add duties on a range of products imported from US. This implies that the famous Kentucky Bourbon will not only become pricier overseas but also in the domestic market as well.     

Immediately after this announcement, the Kentucky Distillers' Association commented that the sanction imposed by the EU would affect what has been a long standing fruitful partnership. Consumers would have to pay a higher price for this popular bourbon. Another fall out would be limited product availability threatening the business proposition at large.

The association also feels that further negotiations are needed to avert the situation and protect the interest of the various stakeholders engaged in the business. This body has been a supporter of fair trade since its inception and attributes the same reason of its huge success.   

In 2017, the exports of U.S. spirits to the EU stood at $789 million, as per data available from Distilled Spirits Council, the designated national trade body representing American liquor manufacturers. Of this, U.S. whiskey contributed 85 percent to $667 million. The same year the spirits manufacturers of US utilised 165 billion pounds of grain to produce this yield.

According to industry watchers, American spirits, especially whiskey, are held in high esteem in the cocktail landscape around the world. The discerning connoisseurs are always on the lookout for unique US blends irrespective of their premium pricing. This is mostly due to the heritage, and the versatile nature of whiskies belonging to the Kentucky region.

Reference Links

https://www.mcclatchydc.com/news/nation-world/national/economy/article212259659.html

https://www.kentucky.com/news/local/news-columns-blogs/tom-eblen/article203877929.html

https://www.mcclatchydc.com/news/politics-government/article203784079.html

 

Whisky News source date: 
Tuesday, June 26, 2018