​Price Of Jack Daniel's Could Rise By 10% Thanks To Trump's Trade War, Makers Warn

We can barely deal with the price hike of a Freddo, so God knows what's going to happen if we have to deal with the rising costs of something even more precious: whiskey.

Well, according to the makers of Jack Daniel's, that could be the cruel fate heading our way - thanks to the implementation of a 25 percent tariff for American whiskey sold in the European Union.

The tariff has been introduced as the EU hits back as part of Trump's ongoing trade war, and the folk at Jack Daniel's reckon this could translate into a 10 percent price high at the customer level.

Phil Lynch, a spokesperson for Jack Daniel's parent company Brown-Foreman, said on Monday that once distributors' stockpiles begin to dwindle over the next few months, prices could rise by 10 percent.

"A 25 percent tariff does not translate into a 25 percent increase on the price of a bottle of Jack Daniel's," Lynch said, explaining that price increases will roll out over the next few months market-by-market, due to advanced shipment in Europe.

"We believe that we are positioned fairly well to withstand the tariffs, but only time will tell how consumers will react in the EU," Lynch continued.

Credit: PA
Credit: PA

Europe may be a large marketforJackDaniel's, but Lynch said that the company also sells the drink in over 170 countries across the globe - with the US apparently being its largest market.

"Of course, it would be far better for all American whiskey companies if this trade dispute between the U.S. and the EU ends before the price increases on Jack Daniel's take effect over the next few months," he added.

It is believed that the EU triggered the tariff as a means of retaliation against the US over its metal import tariffs, following through on its threat that it would hit back at the American market with tit-for-tat levies.

On Monday it also emerged that motorcycle company Harley-Davidson would move some of its production outside of the US - a bold move, given how entrenched the brand is with American culture.

via GIPHY

Harley-Davidson explained that the recently-introduced EU tariffs had increased the levy on its bikes imported to the EU from the US.

The EU is Harley-Davidson's second-biggest market in terms of revenue outside of the US.

The manufacturer said: "The tremendous cost increase, if passed onto its dealers and retail customers, would have an immediate and lasting detrimental impact to its business in the region, reducing customer access to Harley-Davidson products and negatively impacting the sustainability of its dealers' businesses."

God, I think I need a stiff drink... Sucks that it could cost me more.

Featured Image Credit: PA

Jess Hardiman

Jess Hardiman is a journalist who graduated from Manchester University with a BA in Film Studies, English Language and Literature, and has previously worked for Time Out and The Skinny among others.

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