[ad_1]
The new 10% tariff for American whiskey in Ottawa could force bourbon aficionados to pay more for a drink, which will encourage some to adopt a Canadian mix, but Canadian distillers fear that this political decision will be a target reciprocal for their industry.
The federal government confirmed Friday that American whiskey is on its final list of dozens of US products subject to retaliatory tariffs starting July 1 in response to overwhelming steel and gasoline tariffs. Aluminum imposed by the Trump administration. political and symbolic – it would target Kentucky, the home state of Senate Majority Leader Mitch McConnell and the heart of a distinctly American product in the midst of a growing global popularity.
Any price increase could prompt some Canadian consumers to choose a Canadian blend, a historic Canadian product that has its own moment in the global spotlight, including the recognition of Crown Royal's Northern Harvest Rye as a global Whiskey of # 2016, 19659002] But Canadian distillers also fear that tariffs will entail reciprocal levies from US President Donald Trump on Canadian whiskeys sold in the largest US market, just as Americans seem to adopt lighter spirit north of the border. Kentucky whiskey producers and Tennessee whiskeys could raise the rate by 10 per cent. 100 to Canadian consumers. Jack Daniel 's producer has already announced that it would increase prices by about 10 percent in the European Union because of the impact of a new 25 percent tariff. in response to Trump 's tariffs on steel and aluminum commercial block.
million. Brown-Forman said a brand-by-province and province-by-province approach is needed to manage Canada's tariffs.
"The rate increases could be passed on directly to the customer, in whole or in part," he added.
But some provincial liquor boards seem to want to increase the prices themselves
The Société des alcools du Québec transports 20 US whiskeys in continuous supply that would be affected by the surcharge if it came into force. According to a spokesperson for the Nova Scotia Liquor Corporation, bourbon retail prices will rise at the 10% rate on July 16, once the company can do so.
US Whiskey Price Increases May Encourage Fans from bourbon to opt for Canadian whiskey, thus increasing the domestic-minded clientele, Davin de Kergommeaux, author of "Canadian Whiskey: The Portable Expert." "
However, he warned, the possibility of reciprocal tariffs" could be quite devastating "given that the United States is the largest market for Canadian whiskey.
In 2017, 157.5 million liters sold in the United States, according to the Distilled Spirits Council – up 2.4 percent over the previous year
from the 1860s to about 2010, Canadian whiskey was the "The most popular whiskey style among American drinkers," he said. "Recently, bourbon has gained popularity and is now neck and neck with the Canadian-style blend, which includes labels such as Crown Royal and Canadian Club.
Canadian whiskey tariffs would affect the ability of distillers to export south of the border, said David Farran, owner of Eau Claire Distillery, a new producer in Turner Valley, Alberta.
"Everyone It hurts with a fare like this, no matter which side of the border you are on. "It would be a disaster for everyone and I think it's the slippery slope of a tariff trade war."
Follow @AleksSagan on Twitter
© Copyright 2018 Flin Flon Reminder
[ad_2]
Source link
