The US bourbon industry is facing significant challenges due to retaliatory tariffs imposed by Canada and the European Union in response to President Trump’s trade war. Over 90% of the world’s bourbon originates from Kentucky, where advocates warn that the tariffs are “catastrophic” for the industry.
The EU announced a 50% tariff on all American whiskey last month, while Canadian Prime Minister Justin Trudeau imposed 25% tariffs on US imports. The US is also planning to levy 200% tariffs on wines, champagne, and other alcoholic products imported from the region if the EU proceeds with its plan.
Industry leaders, including Chris Swonger of the Distilled Spirits Council, say the tariffs will have a devastating impact on the industry, which relies heavily on international exports. The Kentucky Distillers’ Association also warned that retaliatory measures against bourbon would harm these markets and jeopardize growth for years to come.
The US bourbon industry has long relied on Canadian whiskey imports, with over $40 million worth of whiskey exported from Canada in 2023. However, the current trade war is expected to severely impact small craft distilleries like Brough Brothers Bourbon, which had plans to export to international markets.
With the uncertainty and volatility caused by the tariff war, industry experts predict a challenging future for the US bourbon industry. The Distilled Spirits Council emphasized that a zero-for-zero tariff agreement among 51 countries allowed 3,100 distilllers to grow in the US.
Source: https://abcnews.go.com/Business/kentucky-bourbon-industry-caught-middle-global-tariff-war/story?id=119675707