The “Big Show for Money” panel discusses President Donald Trump’s plan to return production to America.
The escalating trade war Between the United States and its allies they influence US breweries and distillers.
Some distilleries have withdrawn from foreign markets due to uncertainty about tariffs, while beer manufacturers face the upcoming aluminum tax, which means the price of cans can rise.
The Trump administration is trying to reshap the global trade in favor of US production. President Donald Trump threatened to impose a 200% tariff on Thursday alcoholic products from France and other European countries. The threat came shortly after the European Union announced it would continue its 50% planned tariff for US whiskey. The European Commission’s plan to impose counter-tariffs At 26 billion euros ($ 28 billion), US exports of goods were in response to Trump’s 25% steel and aluminum import tariffs.
Chief Executive Officer of the Ghost Council, Chris Wanger, wants the president to secure a ghost agreement with the EU, claiming that the US ghost sector supports more than $ 200 billion in economic activity. It also provides 1.7 million jobs through production, distribution, catering and retail and buys about 2.8 billion pounds of grains from US farmers, according to Wanger.
“We urge President Trump to secure a ghost agreement with the EU to bring us back to zero-zero tariffs, which will create jobs in the United States and increase production and exports to the US hospitality sector,” he said in a statement last week. “We want toast no tariffs.”
Trump’s 25% increase in all steel, aluminum imports take effect, causing revenge from Europe
Distillers as Effef Quint, owner of Distillery Cedar Ridge in Iowa, are in the middle. While Quint told Fox Business, he understands what the administration is trying to do, he said: “It is quite claimed that Bourbon will not be part of the collateral damage from this process.”
She started with someone working in the Cedar Ridge distillery in Iowa. (Distillery of cedar ridge)
“Collateral damage would be a good descriptor of what Bourbon seems to be in this process,” he said, adding that the industry would like “there are no tariffs in any direction, which is mostly what we have had for decades, and it’s well worked out.”
Quint said the imposition of tariffs is forcing distillers to withdraw from foreign markets because of unusual demand. This will subsequently cause excessive consumption in the United States, creating greater competition between distillers at home.
“If you have 300 distilleries that make bourbon and we continue to make the same amount of bourbon while global demand descends through the tariffs that are slapped on the bourbon, then you will end up with a bourbon here,” Quinn said. “It can help the consumer because it can lower Bourbon prices, but will not help the 300 distilleries that make Bourbon.”
Harry Schumacher, publisher of Beer Business Daily, told Fox Business that in the Bourbon and Wine business there is “either a mass part of too much fluid or we cannot get enough of anything”.
Sedar Ridge Burina in his distillery in the curve, Iowa. (Distillery of Cedar Ridge/ Liz Zabel)
“It’s always a holiday or hunger,” Schumacher said. “Unfortunately, just as these tariffs come to the Bourbon industry, even before this began to experience stupidity, not only because the demand was softened, but because they made a bunch of it five years ago.”
Schumacher also argues that another issue is that, unlike beer, unopened bourbon is not perishable and can last on the shelves for 50 years or more.
“Therefore, we in the beer industry do not have those huge changes in nonsense and hunger. Because if we do too much, the beer goes bad and is ejected. So when we make too much bourbon, it sits on a grandfather’s shelf,” he said.
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However, Schumacher noted that the beer industry faces its own unique challenges as a result of tariffs.
Beer Budweiser in the brewery section of Heb’s grocery store in Austin, Texas. (Brandon Bell / Getty Pictures / Getty Pictures)
A more serious issue, Schumacher said, is a 25% tariff for all imports of steel and aluminum, which came into force this week.
“We get almost all of our canned aluminum out of the country,” he said. “I know the administration does not want inflation and this is what will make the prices of beer go immediately. A huge price for beer is aluminum. “
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Schumacher added that 75% of beer is sold in cans, and almost all new products are packaged in this way. He said this has a greater impact on beer companies than it relates to non -alcoholic beverages.
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