Exclusive: The Impact of US Alcohol Tariffs on Businesses and Potential Price Increases for Americans

Impact of U.S. Tariffs: U.S. tariffs on UK and European goods, including a 15% levy on imports, are expected to raise prices for alcoholic beverages like Scotch whisky, French champagne, and Irish whiskey, potentially adding an average of $1 per drink at bars.

Financial Implications: The tariffs could generate nearly $1 billion in federal revenue but may also lead to job losses and reduced sales as costs are passed onto consumers, with the wine and spirits industries already experiencing declining sales.

Price Increases: Analysis indicates that the price of a 750ml bottle of Scotch could increase by over $12 at bars due to tariffs, while other alcohols like Irish whiskey and Polish vodka may see smaller increases of 26 to 52 cents per drink.

Market Response: Some producers have increased shipments to stockpile goods before tariffs took effect, while others, such as Campari and Diageo, are currently opting not to raise prices or are implementing measures to mitigate cost impacts.