American distilleries hope to reach a trade deal with Canada by the end of the weekend
Distilled spirits have promoted a recent trade agreement with the European Union as a step for President Trump to revive mutual tariffs on the distillation spirit. Tennessee’s whiskey distillery hopes the US will reach a similar agreement with Canada and Mexico.
American distilleries are looking at trade talks as Canada and Mexico reach deals with the US until Friday
President Donald Trump On Sunday, it imposed a 15% tariff on most products imported from the European Union in 27 countries. Before the contract, the European Union faced a 30% tariff rate, scheduled to begin on August 1. Distillation spirit was not one of the products included in the trade.
European Commission’s Ursula von der Leyen said Europe will purchase US energy worth $150 billion as part of the deal, in addition to making $600 billion in other investments.
Some American stills hope that this deal is a step towards eliminating all the tariffs in the spirit industry.
President Donald Trump announced 15% tariffs on most imports from the European Union on Sunday. (Fox News/Fox News)
“There were no trade barriers in the distillation spirit industry. We thrived. It was the result of zero tariffs,” says Chris Swanger (Discus), president and CEO of the U.S. Distillation Spirits Council.
Swonger said he would travel to Scotland on Saturday where he would meet with spirits and first minister John Swinney. He hopes to make some progress before Trump returns to the UK in September.
“The industry should be immune to that. Why? Because we bring people together,” Swonger said. “From a US perspective, this industry was not the cause of the trade deficit.”
In March, the Canadian province pulled American liquor labels from the shelf in retaliation. 25% tariff Trump was imposed on Canadian imports. New data from Canada estimates lost $500 million in total spirits revenue when it delisted the American brand. The council said total liquor sales in Canada have fallen by more than 12% since March 5th.
“That’s awful, but it’s a bit of a pain,” Swonger said. “They lost $500 million in revenue.”
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The US Distillation Spirits Council reported that Canada lost $500 million in liquor revenue after Canada listed its American label in a government-owned liquor store in March. Total sales fell by about 12%. (Fox News/Fox News)
The discus found it Canada It replaced the American spirit with a “lower margin product” and had a major impact on the profitability of the Canadian spirit sector.
“There’s no whiskey on the planet that tastes like the bourbon of Tennessee whiskey,” said Heath Clark, Chief Operating Officer and Legal Advisor for the Tennessee Distillery Group. “It’s just a Tennessee sun explosion.”
Clark’s whiskey was one of the American labels pulled from Canadian shelves. He is Canada and european union Pending.
“We have a pallet of products designated in bottles for Canada sitting in our warehouse,” Clark said. “In those cases, you have a product that is currently homeless.”
Heath Clark, a Tennessee whisky still, estimates that up to 100 barrels of whiskey destined for Canada are stuck in his warehouse. Each barrel produces approximately 250 bottles of whiskey. (Fox News/Fox News)
It takes several years to make a bottle of whiskey, and at least 18 months of farming before the distillation process begins. Clark and one of his grain suppliers, John Halcomb, say constant changes caused by tariffs make it difficult to plan production next year.
“We cannot turn spigots on and off with grain supply,” says Halcom. Tennessee Grain Farmer, I said.
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Halcomb estimated his overall business had dropped by about 30% in the past few months due to tariffs, which forced him to cut off his relationship with truck drivers who transport grain.
“A 30% reduction in grain we’re moving means I’m not working for them,” Halcomb said.