Tariffs hit the industry: In late September 2018, tariffs, which have been rolling out over the past year across various industries on a wide variety of products, went into effect for the alcoholic beverage industry. After the United States implemented additional trade sanctions on $200 billion worth of Chinese goods, Beijing responded with retaliatory tariffs on $60 billion of imported U.S. products, which included a 10-percent tariff on beer, wine, and spirits. As reported by Global Trade, “Tariffs rarely benefit anyone and the alcohol industry, along with Americans who enjoy a glass of their favorite beer, wine, or spirit, is no exception,” said Jackson Shedelbower, communications director of the restaurant trade association American Beverage Institute. “U.S.-imposed trade penalties are an extra tax on American businesses and consumers, while retaliatory tariffs instituted by foreign governments cripple expansion into foreign markets.” This round of tariffs follows those imposed by the U.S. government on imported steel and aluminum in early 2018.
Original Outlet: Gordon Brothers
In Depth on the Issue
Tariffs are no more than another tax on American businesses and consumers. While the financial burden is first applied to the business that imports the product, it quickly trickles down the supply chain—increasing productions costs, shrinking sales for domestic businesses, and ultimately increasing prices at the cash register. The current…More on Tariffs →