Suntory is trying to lock in its expenses in case they increase due to new tariffs imposed by the Trump administration by stockpiling alcohol. The corporation owns bourbon brands like Jim Beam, Maker's Mark, and Basil Hayden in addition to Japanese whiskey.
"So we've been stockpiling the products in Europe, but it's not enough. How long would it last? I think at least a year" ~ Suntory Holdings CEO Tak Niinami
A gloomy cloud looms over the liquor business in the near future, a trade war may be coming. In response to Trump's tariffs on European steel and aluminum, the European Union imposed a 25% duty on American whiskey in 2018. Through 2021, American whiskey shipments to the EU fell by 20%. In response, the Trump administration imposed a 25% import tax on whiskey made from single malt scotch.
In December 2023, the Biden administration negotiated an agreement with the EU that postponed the tariffs, reversing its previous decision to leave them in place. However, the suspension is scheduled to end in March of this year. Whiskey shipments to the EU will be subject to a harsh 50% tariff if a new deal is not negotiated.
"We are preparing for that tariff from the European continent, and vice versa. We've been preparing for it because that dispute has been studied well before" ~ Suntory Holdings CEO Tak Niinami
