Tariffs on alcohol? This trade war has gone too far…
Jack Daniels is raising prices… but don’t worry, because they will be doing so in the European Union, which is far away from most of us. But for the rest of you – I am sorry because American bourbon is under attack by China, the EU, and Mexico. So is this a coordinated effort to ruin the lives of Jack Daniels lovers? No. The higher prices are retaliation for steel and aluminum tariffs set in place by Donald Trump.
Prices are up in some places… but Jack Daniels would like to avoid hiking prices everywhere if they can. The stiff competition in the liquor market and an optimistic view of the trade-war should keep costs at bay for a while. However, these taxes will undoubtedly put a dent in company profits because 25% of sales are made in the EU.
When will the madness end… well, there is a preliminary trade deal in place between the United States and Mexico, so that’s good news. However, China isn’t blinking and plans to put tariffs on up to 25% of American products. The most affected product will be automobiles – which is not nearly as important as alcohol, according to, erm….research.