American whiskey exports slumped in 2-H of Y 2018, taking a blow from higher duties by the country’s trading partners following President Trump’s tariffs an industry group said on Thursday.
Canada, China, Mexico and the EU placed import duties ranging from 10% to 25% on whiskey/bourbon last year, resulting in a 11% fall in US whiskey exports in 2-H, according to a report from the Distilled Spirits Council.
For 1-H of Y 2018, whiskey exports grew 28% compared to the same frame in Y 2017, partly helped by companies like Jack Daniels maker Brown-Forman Corp, (NYSE:BF-B) fast-tracking shipments overseas, especially to Europe, before the tariffs kicked in.
Overall for FY 2018, whiskey exports rose 5.1% to $1.18-B, a significant fall from the 16% rise seen in Y 2017.
Earlier in March, Brown-Forman said absorbing the costs of tariffs in Key European markets was the primary reason for the decline in its Q-3 gross profit margin.
The company also said its sales would take a hit in Y 2019 if the tariffs were to remain in place.
“The damage to American whiskey exports is now accelerating, and this is collateral damage from ongoing global trade disputes,” Distilled Spirits CEO said.