The “The Big Money Show” panel deals with President Donald Trump's plan to bring production back to America.
Escalating trade war Between the US and their allies are influenced by US breweries and distillers.
Some distilleries are surrounded by tariffs due to uncertainty, while beer manufacturers face the upcoming aluminum tax, which means that the costs of cans could burst.
Trump's administration seeks to transform global trade in favor of American production. President Donald Trump on Thursday threatened to save 200% tariff alcoholic products from France and other European countries. The threat came shortly after the European Union announced that it would continue with the planned 50% tariff on American whiskey. The European Commission's Plan Save the counterclaims For EUR 26 billion ($ 28 billion) worth exporting US goods, a reaction to 25% of Trump tariffs on steel and aluminum imports.
Chris Swonger, CEO of distilled spirits, wants the President to ensure that the EU agreement with the EU and claims that the US ghost sector supports economic activities of more than $ 200 billion. According to Swonger, it also provides 1.7 million jobs across production, distribution, hospitality and retail and buy about £ 2.8 billion grains from American farmers.
“We are calling for President Trump to ensure an agreement on spiritual with the EU to return us to zero rates for zero that will create American jobs and increase production and export for the US Sector Hospitality,” he said last week in a statement. “We want toasts not tariffs.”
Limivary like Jeff Quint, owner of the Cedar Ridge distillery in Iowa, will find themselves in the middle. While Quint said Fox Business that he understands what the administration is trying to do, he said, “It is quite difficult to say that bourbon will not be part of collateral damage from this process.”
The shot of someone who works in the Cedar Ridge distillery in Iowa. (Cedar Ridge distillery)
“Damage to the collateral would be a good descriptor of what Bourbon looks like in this process,” he said, adding that this industry would prefer “No tariffs in both directions, which is mostly what we have had for decades, and that's pretty good.”
Quint said that the placing of tariffs forces distillery to pull out of foreign markets from a faint demand. This then causes an excessive offer in the US and creates more competition between distillery on the domestic market.
“If you have 300 distillers that produce bourbon, and we continue to produce the same amount of bourbon, while global demand decreases through the tariffs that are slapped on the bourbon, then it will end up with Bourbon's instructions,” Quint said. “This could help the consumer, because it could increase the prices on the bourbon, but it won't help 300 distillers that produce Bourbon.”
Harry Schuher, Beer Business Daily, said Fox Business that in Bourbon and Wine Business is “either a massive amount of too much liquid, or we can't get enough.”
Cedar Ridge barrels in its distillery in Swisher, Iowa. (Cedar Ridge Distillery/ Liz Zabel)
“It's always a holiday or famine,” Schuhmacher said. “Unfortunately, just like these tariffs are coming to Bourbon Industry, it has been experiencing a glut before, not only because the demand softened, but because they did a lot five years ago.”
Schuhmacher also argued that another problem is that unlike beer, unopened bourbon is not degraded and can withstand the shelves for 50 or more years.
“That is why we in the beer industry do not have the huge fluctuations of glut and famine. Because if we make too much money, the beer will get worse and thrown out.
FOX BUSINESS CORPONENT MAX GORDEN joined “The Big Money Show” to distribute the potential effects of the proposed tariffs of President Donald Trump on European alcoholic beverages
Schuhmacher, however, pointed out that the beer industry faces its own unique challenges for tariffs.
Budweiser Beer in the brewery section in the Heb Grocery store in Austin, Texas. (Brandon Bell / Getty Images / Getty Images)
A more serious problem, said Schuhmacher, is 25% of the tariff on all steel and aluminum imports that came into force this week.
“We get almost all our canned aluminum from the outside country,” he said. “I know the administration does not want inflation and that is what will cause beer prices to rise immediately. The huge input cost of beer is aluminum. ”
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Schuhmacher added that 75% of beer is sold in cans and almost all new products are packed in this way. He said it has a greater impact on beer companies than on companies with soft drinks.
