Whiskey Offers Window Into the Pain of a Trade War

Published On Feb 14, 2025, 5:00 AM

The article discusses the looming return of tariffs on American whiskey from the European Union, set to take effect after March 31 unless extended. The potential 50% tariffs could significantly impact the spirits industry, particularly affecting exports to key growth markets in Europe. Industry leaders are actively lobbying against these tariffs, recalling the detrimental trade disputes of the past that hurt American distillers. With the possibility of retaliatory tariffs affecting other alcohol types, there are concerns about the future of American whiskey exports. Bars are already stockpiling supplies in anticipation of these tariffs, and distilleries are postponing expansion plans.

Stock Forecasts

DEO

Negative

The potential reimplementation of high tariffs on American whiskey is likely to negatively impact companies in the spirits industry, particularly those with significant exposure to the European market. This could lead to a decline in sales and stock performance for affected companies.

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