Tennessee whiskey distillers warned of long-term impacts to the American spirits and hospitality industries during President Trump’s imposed tariff war with U.S. allies.
David Suk, an American craft distiller and Saint Luna Co-Founder and CEO, said tariffs could drive up consumer prices. Less consumer spending, Suk said, means less revenue for domestic distillers who aren’t in big-box liquor stores.
“I think if the average consumer has to pick between going out to their favorite restaurants, trying a really great cocktail that Saint Luna makes or paying their rent, they’re going to pay their rent,” Suk said.
Offshore production is unavoidable for Phil Prichard, Prichard’s Distillery President and Master Distiller. Prichard said he sources his bottle from China.
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Prichard stocked up on 36,000 custom glass bottles when he “saw the writing on the wall” ahead of Trump’s tariffs. He said the bottles should last him about a year of production.
“We’re pretty well destined to stay with China because China is able to provide us a custom-made bottle at a reasonable price,” Prichard said. “Technically, we beat the tariff,” Prichard said.
American whiskey quickly became the target of retaliatory tariffs against the U.S. Some Canadian provinces, including Ontario, Manitoba and Nova Scotia, further protested Trump’s tariffs by pulling American spirits off the shelves in early March.
The government-owned liquor stores in Canada tossed American brands, including Uncle Nearest Premium Whiskey. Fawn Weaver, the CEO, believes the retaliation is worse for Canadians than Americans.
“In order to have our product on their shelves, they’ve paid us for it already. Now that they’ve pulled it off the shelves, they’re not going to get the revenue from it,” Weaver said.
Weaver said Crown Royal, a Canadian whiskey, is the top-selling whiskey in the U.S. She encouraged Americans to buy American labels for the time being.
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Historically, the U.S. has enjoyed zero for zero tariffs on distilled spirits with countries like Mexico, Canada and the European Union.
Since 2021, the EU’s 25% tariff on American Whiskey has been paused during the Union’s steel and aluminum dispute with the U.S., according to the Distilled Spirits Council of the United States.
Transatlantic trade in spirits increased by nearly 450% during this time.
The EU reimposed the tariffs on American Whiskey at 50% on April 1.
“Our industry is going to lean in and do our best to encourage all governments involved to really leave this industry be. We don’t deserve or need to be collateral damage,” Chris Songer, DISCUS CEO, said. “Toasts, not tariffs.”
Distillers said Crown Royal, a Canadian whiskey, is the top-selling whiskey in the U.S. They hoped that Americans buying American labels would keep domestic craft distillers in business.
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