Aluminum Tariffs Threaten to Sour American Whiskey (and more)


As we've previously discussed on DrinksReform, tariffs are going to hurt the USA's drinks industry. Despite claims that they will protect business, American brewers are bracing for increased productions costs. Reuters provides brewer Adam Spiegel's situation as a case study:

U.S. President Donald Trump on June 1 imposed tariffs for aluminum imports from Mexico, Canada and the European Union. As a result, Spiegel expects his bill for recently-ordered steel fermentation tanks, worth several hundred thousand dollars, to be $50,000 to $60,000 higher.

Spiegel will also get squeezed by the tariffs the EU announced in retaliation on U.S. goods, including whiskey, earlier this week. They could put his roughly 58 pounds ($77.83) per bottle of Sonoma Rye and West of Kentucky Bourbon out of reach for some European drinkers unless he swallows some of the cost.

With nearly a quarter of his sales coming in Europe, lowering his prices enough to offset the entire tariff would be too stiff a drink for Spiegel given total revenue only amounts to a few million dollars a year.

Find the entire article here. The threat is also looming in other industries. For some details about how that will affect beer, check this article out. For more about retaliatory tariffs, follow this link.