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Tariffs

Whiskey Industry Warns of Job Losses and Economic Pain from Tariffs

Strategic Insights

— 2 min read

As President Trump prepares for a state visit to Britain, whiskey industry leaders are pressing for an exemption from tariffs on Scotch whisky, warning that they could lead to 3,300 job losses in the US and economic pain for the hospitality industry.

The US spirits industry has an interconnected relationship with its Scottish counterpart, with American distilleries shipping used bourbon barrels to Scotland to age Scotch. This trade, valued at $300 million annually, is threatened by the 10 percent tariff imposed by Trump's administration. Industry leaders argue that the tariffs would harm both US and Scottish economies, as well as US consumers, who would face higher prices for Scotch whisky.

"If the 10 percent tariffs persist, the United States will lose 3,300 jobs, and the U.S. hospitality industry would lose $300 million," said Chris Swonger, head of the Distilled Spirits Council of the United States.

The whiskey industry is lobbying American officials to reconsider the tariffs, with Scottish officials pressing the UK government to seek an exemption for Scotch. US distilleries, such as Brown-Forman, which owns Maker's Mark and Jameson, own distilleries in Scotland and are also affected by the tariffs.

Key Takeaways:

  • The US whiskey industry is warning of 3,300 job losses in the US and economic pain for the hospitality industry due to tariffs on Scotch whisky.
  • The US and Scottish whiskey industries are intertwined, with American distilleries shipping used bourbon barrels to Scotland to age Scotch.
  • The trade, valued at $300 million annually, is threatened by the 10 percent tariff imposed by Trump's administration.
  • Industry leaders argue that the tariffs would harm both US and Scottish economies, as well as US consumers, who would face higher prices for Scotch whisky.
  • US distilleries, such as Brown-Forman, which owns Maker's Mark and Jameson, own distilleries in Scotland and are affected by the tariffs.
  • The tariffs are an additional blow to an industry that's already suffering a downturn due to general economic anxiety and health warnings.

Statistics:

  • 90 percent of Scotch whisky is exported each year.
  • The US is Scotch whisky's biggest market.
  • 10 percent tariffs on Scotch whisky could lead to 3,300 job losses in the US.
  • The US hospitality industry could lose $300 million due to higher prices for Scotch whisky.
  • $300 million: the value of old bourbon casks shipped from the US to Scotland each year.
  • 60 percent: the proportion of barrels used by Anthony Wills, the founder of Kilchoman Distillery, that are from Kentucky.

Sources:

  • The New York Times
  • Chris Swonger, head of the Distilled Spirits Council of the United States
  • Mark Kent, chief executive of the Scotch Whisky Association
  • John Swinney, first minister of Scotland
  • Anthony Wills, founder of Kilchoman Distillery
  • Brown-Forman
  • Diageo
  • Kilchoman Distillery
  • Glen Garioch Distillery

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