Tariffs take toll on American whiskey exports in last half of 2018

In this June 20, 2018, file photo, Catoctin Creek Distillery whiskey is on display in a tasting room in Purcellville, Va. Retaliatory tariffs caused a sharp downturn in American whiskey exports in the last half of 2018 as distillers started feeling the pain from getting caught up in global trade disputes, an industry trade group said Tuesday, Feb. 12, 2019. Catoctin Creek Distillery has a couple hundred cases of its rye whiskey sitting in a European warehouse. The inventory was built up in anticipation of growing European sales in 2018. But since the tariffs took effect, their sales in Italy and Germany have plunged, and its plans of expanding to the United Kingdom are on hold, said its co-founder and general manager, Scott Harris. (AP Photo/Steve Helber, File) In this June 20, 2018, file photo, Catoctin Creek Distillery whiskey is on display in a tasting room in Purcellville, Va. Retaliatory tariffs caused a sharp downturn in American whiskey exports in the last half of 2018 as distillers started feeling the pain from getting caught up in global trade disputes, an industry trade group said Tuesday, Feb. 12, 2019. Catoctin Creek Distillery has a couple hundred cases of its rye whiskey sitting in a European warehouse. The inventory was built up in anticipation of growing European sales in 2018. But since the tariffs took effect, their sales in Italy and Germany have plunged, and its plans of expanding to the United Kingdom are on hold, said its co-founder and general manager, Scott Harris. (AP Photo/Steve Helber, File)

By Associated Press February 12, 2019 4 min read

LOUISVILLE, Ky. (AP) – Retaliatory tariffs caused a sharp downturn in American whiskey exports in the last half of 2018 as distillers started feeling the pain from global trade disputes, an industry trade group said Tuesday.

Exports to some key overseas markets gyrated wildly last year for producers of bourbon, Tennessee whiskey and rye whiskey. Overall, U.S. spirits exports in 2018 stayed on another record-setting trajectory, due in part to surging whiskey sales in the months leading up to the tariffs as larger distillers stockpiled supplies, the Distilled Spirits Council said. Other categories including vodka, brandy and rum also had strong overseas sales.

But exports would have been much higher without the trade war, it said.

“For the first time, data can demonstrate the negative impact of retaliatory tariffs on what had been a booming export growth story,” said Christine LoCascio, the council’s senior vice president for international affairs.

“The tariffs are making it more difficult to be competitive in key markets,” she added.