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(Reuters) – US whiskey exports plummeted in the second half of 2018, as the country's trading partners were hit by higher tariffs following President Donald Trump's import duties on steel and steel. of aluminum, announced Thursday a group of the sector.
A man drinks American whiskey at a bar in Shanghai, China, on April 6, 2018. Photo taken on April 6, 2018. REUTERS / Aly Song
Canada, China, Mexico and the European Union imposed import duties ranging from 10% to 25% on American whiskey and bourbon last year, resulting in a drop of 11%. % of US whiskey exports in the second half, according to a report by Distilled Spirits. Advice.
For the first six months of 2018, whiskey exports increased by 28% over the same period in 2017, thanks in part to companies like Jack Daniels' manufacturer, Brown-Forman Corp, to speed up the processing of shipments. Overseas, especially to Europe, before the entry into force of customs duties.
Globally, for the full year 2018, whiskey exports increased by 5.1% to $ 1.18 billion, a significant decrease from the 16% increase 2017.
Exports to the European Union fell by 13.4% in the second half, after rising 33% in the first half.
The European Union, which imposed a 25% tariff on American whiskey, is the largest market for alcoholic beverages, accounting for nearly 60% of total exports, according to the Council.
Earlier in March, Brown-Forman had stated that the absorption of tariff costs in major European markets was the main reason for the decline in gross profit margin in the third quarter.
The company also said its sales would be hit hard in 2019 if rates were maintained.
"Damage to US whiskey exports is accelerating, it is collateral damage from ongoing global trade disputes," said Chris Swonger, General Manager of Distilled Spirits Council.
Total spirits exports to the US increased 9.5% to $ 1.8 billion in 2018, but also slowed compared to 2017, according to the report.
Report by Uday Sampath in Bengaluru; Edited by Shailesh Kuber
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