Here is just a quick look at how imposing tariffs on one place comes back to bite American businesses in the ass.
Some key points:
- The Distilled Spirits Council said that 63% of U.S. whiskey exports have faced retaliatory tariffs from the European Union, China, Turkey, Canada and Mexico. The EU currently levies 25% tariffs on U.S. whiskey.
- …at least 11,200 to 78,600 jobs could be lost in the beverage, alcohol and hospitality sectors, which currently employ 2.4 million Americans, if the EU-U.S.-conflict worsened.
- Foreign governments subject to U.S. President Donald Trump’s trade tariffs have targeted American distilleries and their bourbon and rye whiskeys for retaliation. The industry fears new tariffs under consideration by the U.S. government could result in even higher tariffs on their products in Europe.
- U.S. whiskey exporters are struggling to recoup lost sales after shipments to Europe plummeted 21% between June 2018 and 2019, according to data from the Distilled Spirits Council, a U.S. industry group.
The math in this issue is simple and easy to report. Reuters did a great job of looking at the impact on local employment. This is just one way to make a connection between an international action — tariffs — and local consequences.