After more than a year Europe had hit US whiskey with added tariffs, US whiskey exporters were still struggling to even out the odds of higher tariffs amid steep competition on EU markets. In point of fact, when EU tariffs had first hit the US whiskey back in June 2018, Pennsylvania-based American distillery, Mountain Laurel Spirits LLC wiped out more 10 percent of its market cap overnight as the US-based craft distillery’s European distributors had stopped purchasing its award-winning Rye Whiskey, Dad’s Hat Pennsylvania, while market complexion for almost all of US whiskey exporters in euro zone had been identical.
More critically, a raft of American brewing and distillery companies had been stressed over the fact that Trump’s planned tariff on EU-based products could mead a much higher tariff for US bourbon and rye whiskey exports into EU as retaliation.
Adding that the Mountain Laurel might breach a break-even point from profitability in a near-term, the company owner and a former chemical engineer who later turned into a distiller, Herman Mihalich said on Sunday (August 18th) during testing his latest batch of whiskey in the sleepy hamlet production hub at Bristol located near southeastern part of Pennsylvania, “We went from a marginally profitable business to breaking even.
” Adding further strains on to US distillery industry, data from Distilled Spirits Councils, a US industry group accountable for overseeing the ins and outs of US distillery businesses, revealed on Sunday (August 18th) that shipments of US whiskey exports to EU were pummeled more than 21 percent over the last one year, almost entirely prodded by an upsurge in tariffs on US distilleries and spirits.