facebook linkedin twitter

Trump Trade Disputes Curbing Taste For American Whiskey

March 21, 2019 by Dan McCue
Trump Trade Disputes Curbing Taste For American Whiskey

The Trump administration’s various trade disputes have caused a slump in American whiskey sales abroad, the Distilled Spirits Council said on Thursday.

In a new report the industry group said whiskey exports were robust in the first half of 2018, growing 28 percent to a total of $595 million.

But after the White House imposed retaliatory tariffs in June, demand for bourbon, Tennessee whiskey and rye whiskey dried up, declining 11 percent over the ensuing six months, compared to the same period in 2017.

The decline was even larger in the European Union, the industry’s biggest export market. After the tariffs went into effect, exports to the EU plunged 13.4 percent, the council said.

The widespread declines were particularly noteworthy because typically exports in the second half of the year are much higher than the first half.

Last month, at its annual economic briefing, the council had reported that the tariffs had caused American whiskey imports to decline by 8.2 percent. It said the numbers were revised for Thursday reporting after full reporting was available for the month of December.

“With the full year data in hand it is clear that the retaliatory tariffs are having a significant and growing impact on American whiskey exports, which had been a bright spot for U.S. agriculture exports,” said Chris Swonger, the council’s president and CEO.

“The damage to American whiskey exports is now accelerating, and this is collateral damage from ongoing global trade disputes,” he said.

American whiskey makers have been reeling since mid-2018, when the EU targeted American whiskey and other U.S. products in response to President Donald Trump’s decision to slap hefty tariffs on European steel and aluminum.

Whiskey makers in the U.S. also face retaliatory tariffs in Canada, Mexico, China and Turkey as a result of other trade disputes the administration is involved in.

Despite this, total U.S. spirits exports reached a record $1.8 billion, a 9.5 percent increase from $1.64 billion in 2017, but the rate of growth significantly slowed from the 14.9 percent growth recorded between 2016 to 2017.  

For the first half of 2018, total U.S. spirits exports grew 26.1 percent to a total of $881 million.  Following the imposition of the retaliatory tariffs, exports during the second half of the year declined 3 percent compared to 2017, for a total of $909 million.  In the fourth quarter alone, exports fell by 13.1 percent relative to the same period in 2017.

“These numbers are worrisome—even if some portion of the front-end growth is attributable to larger producers positioning product in foreign markets ahead of the tariffs,” Swonger said.

A+
a-

In The News

Health

Voting

Trade

November Trade Deficit Hits Near Record-High $80.2 Billion

WASHINGTON (AP) — The U.S. trade deficit surged to a near-record high of $80.2 billion in November as exports slowed... Read More

WASHINGTON (AP) — The U.S. trade deficit surged to a near-record high of $80.2 billion in November as exports slowed at the same time that imports jumped sharply. The November deficit was 19.3% higher than the October deficit of $67.2 billion and was just below the... Read More

January 4, 2022
by Dan McCue
USMCA Panel Gives US a Win Over Canada in Dairy Dispute

WASHINGTON — The United States has prevailed in the first dispute resolution case brought under the United States-Mexico-Canada Agreement, known... Read More

WASHINGTON — The United States has prevailed in the first dispute resolution case brought under the United States-Mexico-Canada Agreement, known more commonly as USMCA. The case before the inaugural dispute settlement panel was a long-running dispute over Canadian trade policies intended to shield its dairy industry... Read More

December 17, 2021
by Dan McCue
Panel Recommends Extending Trump-Era Duties on Solar Panels

WASHINGTON — The Biden administration should extend tariffs on solar panel modules and cells an additional four years to safeguard... Read More

WASHINGTON — The Biden administration should extend tariffs on solar panel modules and cells an additional four years to safeguard U.S.-based solar panel manufacturers, a U.S. trade panel said. Former President Donald Trump established the duties on Chinese-made photovoltaic modules and cells under the auspices of... Read More

December 16, 2021
by Tom Ramstack
Biden’s Truck Driver Outreach Aimed at Easing Supply Chain

WASHINGTON — The Biden administration on Thursday announced a plan to increase the number of commercial truck drivers in a... Read More

WASHINGTON — The Biden administration on Thursday announced a plan to increase the number of commercial truck drivers in a bid to alleviate supply chain gridlock. The plan includes assistance to state motor vehicle departments to issue more commercial licenses, increase apprenticeships and hire military veterans.... Read More

December 16, 2021
by Reece Nations
Blue Dog Coalition Shares Supply Chain Hurdles, Solutions During Roundtable

SAN ANTONIO — Members of the Blue Dog Coalition hosted a virtual roundtable discussion on Wednesday over impediments to the... Read More

SAN ANTONIO — Members of the Blue Dog Coalition hosted a virtual roundtable discussion on Wednesday over impediments to the national supply chain as well as what’s being done to solve them. The discussion featured input from Gene Seroka, executive director of the Port of Los... Read More

December 14, 2021
by Dan McCue
New Dems Urge Swift Action on Supply Chain Crisis

WASHINGTON — Congress must take swift and decisive action to shore up the nation’s supply chains if it wants to... Read More

WASHINGTON — Congress must take swift and decisive action to shore up the nation’s supply chains if it wants to keep creating jobs and ensure America leads the global economy, the New Democrat Coalition said Tuesday. Specifically, the largest ideological caucus in the House is urging... Read More

News From The Well
scroll top