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The Bourbon Industry in reticle from the American-Canadian trade war

The Bourbon Industry in reticle from the American-Canadian trade war

 


The Louisville distilleries, Ky.

Alcohol made in the United States is removed from store shelves in Canada in retaliation for prices placed on its products by the Trump administration.

Alcohol made in the United States has been removed from store shelves across Canada. Graham Hughes / Bloomberg via Getty Images

This also leads to canceled shipping orders and alcohol agreements in standby with potential business partners, according to some companies in Kentucky Bourbon.

The Michters' family distillery in Louisville has already lost $ 115,000 in bourbon shipping orders canceled in Canada, its largest foreign market as alcohol stores in most Canadian provinces was invited to remove products from their shelves.

Andrea Wilson, chief of the Distillery Michters in Louisville, Ky.kailani Koenig / NBC News

This is reality, said Andrea Wilson, chief of Michters. We would prefer to see fewer prices than more.

Earlier this month, Trump announced a 25% price on goods imported from Canada and Mexico two of the country's largest business partners before postponing it to the larger trade war.

Trump on Tuesday amplified his difficult tariff speech, saying that he would double the prices imposed on steel and aluminum imported from Canada.

The threat once came after Ontarios First, the most populous province of Canada, announced that it would charge 25% more for electricity to 1.5 million Americans.

The Kentuckys Bourbon industry pays around $ 9 billion in the local economy each year, according to the Kentucky Distillers' Association.

Bourbon barrels of Michors. Kailani Koenig / NBC News

The State produces approximately 95% of bourbon sold worldwide, estimates the association.

Although data on the effects of prices are not available, American consumers will probably not see an increase in prices on Bourbon for at least a few months, said Marten Lodewijks, president of the US Division of the IWSR drinking industry.

But the Kentucky distilleries could feel an immediate pinch if some of their shipments to Canada are canceled, he said.

Wilson said that she feared that her business could not suffer new losses if the pricing war was continuing.

If we did not sell to our biggest export market, this is a significant impact for our company, and it is very sad for us, because we have friends, we have established relations in this country for a long time, she said.

The Brough Brothers distillery belonging to blacks in Louisville has its own set of problems caused by the pricing war.

Victor Yarbrough, CEO of Brough Brothers Distillery in Louisville.kailani Koenig / NBC News

The company was negotiating to sell its products in Canada for the first time, but discussions suddenly ended when the trade war started.

The agreement failed as soon as the prices have been announced, said CEO Victor Yarbrough.

Literally, were in the midst of expansion. Everything has been suspended, they cannot buy, said Yarbrough, adding that his plans for 2025 also had to ship alcohol to France and the United Kingdom.

Now he plans to send his products to South Africa or Brazil, but Canada would have been the largest market.

I'm just like, how can we help come back to square one? How can we facilitate good relationships, you know, the relationships we have had? He asked.

Fawn Weaver, founder of the Tennessee whiskey brand belonging to blacks, the closest, had her alcohol products removed in Canada, but said she was already preparing for the benefits.

Weaver, who maintains that a tariff war could be predicted during the presidential campaign, said the prices mean that his Cantbe business is also aggressive on the world market for the moment.

As an independent brand, I cannot afford these prices. I cannot afford to absorb it and I cannot transmit it to consumers, she said. One could say that this is exactly what the current administration wants for all of us to bring our business to the United States

She added: We already knew that Trump was very clear in what he was going to do, even if we did not know where the prices were going to hit.

Kailani Koenig and Maggie Vespa reported to Louisville, Deon J. Hampton de Denver and Mississippi Bracey.

Sources

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2/ https://www.nbcnews.com/news/us-news/bourbon-industry-crosshairs-us-canada-trade-war-rcna195906

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