The price for American whiskey sold in Europe is about to increase due to new tariffs imposed by Brussels on goods imported from the United States, Bloomberg reports.
Phil Lynch, a spokesman for the Brown-Forman Corporation, which produces some of the most well-known whiskey brands in the world, like Jack Daniels, told the news agency that "a 25 percent tariff does not translate into a 25 percent increase on the price of a bottle," adding that the cost at the customer level will increase by about 10 percent.
"In markets where we don’t own our own distribution, it’s the local distributor whom we sell our own product to – they will make the decision on whether or not to increase the price on the product that they purchased from Brown-Forman and then sell into the retail level," the spokesman said.
He noted, however, that "it would be far better for all American whiskey companies if this trade dispute between the US and the EU ends before the price increases on Jack Daniel’s take effect."
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Earlier this month, the European Union imposed tariffs on US products worth 2.8 billion euros ($3.3 billion) in response to the US president's decision to hit Europe with 25 percent tariffs on steel imports and 10 percent duties on aluminum.