The US whiskey industry, particularly those based in Tennessee, are facing uncertainty due to new tariffs imposed on imported spirits. Big-name brands like Jack Daniel’s may be hit hard, but smaller local distilleries say they’re better equipped to weather the financial storm.
Tennessee’s whiskey industry contributed over $3.4 billion to the state’s economy in 2022, with major players like Brown-Forman facing significant losses due to tariffs in the past. The company recently laid off nearly 650 employees and has seen four consecutive quarters of declining sales.
Industry leaders are pushing for a “zero-for-zero” tariff agreement to protect American whiskey from international trade wars. However, smaller distilleries like Standard Proof Whiskey Co., say they won’t feel the impact as much due to their domestic focus.
“We’re not really feeling the impact so much because everything we’re doing is domestic,” said Jeremy Aguirre of Standard Proof Whiskey Co. “We’re a micro-distillery and our business model doesn’t rely on international sales.”
Local bars and liquor stores also seem unfazed, as they don’t expect significant changes in their sales. The whiskey industry remains closely watching trade negotiations, hoping for a resolution that won’t leave American whiskey at a disadvantage.
Source: https://fox17.com/news/local/tennessee-whiskey-industry-faces-new-threat-as-tariffs-take-effect