Price Alert - New Tariffs on Scotch after Oct 18

[The Black Tot]

Hey all, 

 

Not discussing the politics of this move, but heads up, the price of single malts will likely be changing soon.

 

...not great for this corner of SB.com.

 

https://www.bbc.com/news/uk-scotland-scotland-business-49915034

Edited October 3, 2019 by The Black Tot

[lcpfratn]

Well, that’s not very good news!

[GaryT]

But I've heard it from an alleged reliable source that tariffs are paid BY those other countries, so shouldn't bug me, right?  (but I get where you're coming from in the UK Paul . . . sorry how that's going to hit you  )

[beasled]

This'll probably go the way of the bourbon import tariffs - a bit of 'argy-bargy', toys-out-the-pram and it'll get settled. 

 

"Resorting to tariffs is not in the interests of the UK, EU or US," the UK said. "We are working closely with the US, EU and European partners to support a negotiated settlement to the Airbus and Boeing disputes"

[The Black Tot]

I hope you guys are right and it gets resolved at the zero hour.

 

That would be a crappy development at holiday time.

 

Although orders placed by distributors now probably are for after December shelf arrivals... 

 

Just another reason to have a well stocked bunker, I guess.

[flahute]

Not a fan of this move at all.

[lcpfratn]

I don’t think anyone is a fan of this, but with the underlying Airbus and Boeing long-standing dispute, and the fact that the EU struck first with tariffs on Bourbon, this was inevitable.

[The Black Tot]

Hmm. I hadn't read about the June 22 bourbon tariff going into effect!

 

I should buy that 12 case of 4RsmB I've been thinking about before that works it's way down to the retail level in the UK!

 

It doesn't benefit producers nor we consumers on either side of the pond when gov'ts get 25% of the prices, so it just sucks all around.

 

If this results in a cooling effect on cross-Atlantic purchasing maybe that will give the battered whisk(e)y rackhouses a bit more breathing room to age. I'm certainly tired of the "Fascinating new discovery of how great single malt can taste at 7-8yrs old!" What a waste of malt that could have been 15yrs old in 2026.

 

Anyway it's totally unfair for Kentucky and Scotland to pay for the playground arguments between Washington and Northern Ireland.

[lcpfratn]

The EU bourbon tariffs have been in place for over a year, and it has impacted bourbon sales in Europe.

[The Black Tot]

Prophetic post from last year in the comments section of when these tariffs were initially proposed:

 

"Very revealing that the EU has chosen to add tariffs to Bourbon and Whiskey rather than US wines! The anticipated response from the US will undoubtedly be a similar raising of tariffs on Scotch and Irish Whiskies resulting in difficulties for the suppliers from these countries’ industries rather than French, Italian, German or Spanish wines had tariffs been imposed on US wines instead!."

 

Excellent point. EU gets tough on the US by screwing Scotland who will be leaving, instead of punishing the core EU countries' industries.

 

No wonder we're leaving.

[The Black Tot]

4 minutes ago, lcpfratn said:

The EU bourbon tariffs have been in place for over a year, and it has impacted bourbon sales in Europe.

You're right, I got the year mixed up. It was indeed 2018.

 

Edit- Also, stop trying to talk me out of buying a 12 case of 4RSmB !!!

Edited October 5, 2019 by The Black Tot

[lcpfratn]

French wines, and spirits in Germany and Spain are also impacted by the US tariffs, since these tariffs are tied to the Airbus and Boeing disputes.

[The Black Tot]

https://spiritsjournal.klwines.com/klwinescom-spirits-blog/2019/10/10/ad-valorem-ad-nauseam-mz449

 

Additional insights gained from this article - the tariff doesn't apply to blended scotch.

 

Diageo lobbying? Diageo blended brands:

Johnnie Walker, Bell's, Black & White, Buchanan's, Dimple, Grand Old Parr, Haig Club, Justerini & Brooks (J&B), Vat 69, White Horse

 

I know D does a lot of single malts as well, but they could just as well use some cooling off time to replenish their stocks, and blends make up more than 75% of sales in the US.