American whiskey exports see significant decline due to retaliatory tariffs
Regarding the exports to the EU, the trade organization Distilled Spirits Councils recorded a decline of 13.4% in the second half of 2018
The US trade organization Distilled Spirits Council (DISCUS) has published a report on export figures for 2018. This clearly shows the negative effects of retaliatory tariffs whiskey introduced by the EU in June 2018 together with tariffs on jeans, motorcycles and peanut butter in response to President Trump's tariffs of 25% on steel and 10% on aluminum.
Whiskey exports to the EU increased by 33 percent in the first half of 2018, continuing the positive trend of the previous year, but then saw a painful decline of 13.4 percent in the second half of the year. As the EU market accounts for a 60% share of total exports of American whiskey, this decline has also a big effect on the export figures worldwide although with $1.8 billion, the US still saw a rise of 9.5% in 2018. However, the rapid upward trend, which was characterized by 14.9% of export growth in 2016 compared to 2017, has significantly slowed down.
Both large and small distilleries are equally affected by these export declines, reports DISCUS. Chris Swonger, CEO of the organization, leaves no doubt that these are the effects of the trade dispute and the tariffs and speaks of significant and growing impact on the export of American whiskey.
The full report of the Distilled Spirits Council with detailed figures regarding different export markets can be found here on the website of the organization.