Latest news with #Michter'sDistillery
Yahoo
24-03-2025
- Business
- Yahoo
Distilleries feel the impact after Canada pulls U.S. booze from shelves. Here's how tariffs can affect consumer prices
Michter's Distillery, a family-owned distillery in Louisville, Kentucky, has already lost $115,000 in canceled shipments to Canada, its largest foreign market. The loss comes as many Canadian liquor stores are removing U.S. products from their shelves. 'If we're not selling to our largest export market, that's a significant impact to our business, and it's very sad for us, because we have friends, we've built relationships in that country for a long time,' Andrea Wilson, chief operating officer of Michter's, shared with NBC News. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Americans with upside-down car loans owe more money than ever before — and drivers can't keep up. Here are 3 ways to cut your monthly costs ASAP Trump had announced 25% tariffs on imports from Mexico and Canada, but he later postponed those tariffs until April. The President then threatened to double the tariffs on steel and aluminum coming from Canada. Despite the uncertainty about what tariffs are in effect, when they will be implemented and at what rate, U.S. companies and the economy at large are feeling the impact of a burgeoning tariff war. Kentucky's bourbon industry generates $9 billion annually and employs 23,100 people, according to the Kentucky Distillers' Association. The association also estimates the state produces 95% of the world's bourbon supply — which means disruptions to the industry could have long-reaching effects on the companies that make it, as well as the state of Kentucky. Wilson said she fears her business could face further losses if the tariff war continues. 'That's the reality of it,' Wilson said. 'We would prefer to see less tariffs than more.' Fawn Weaver, founder of Black-owned whisky brand Uncle Nearest, has also had her product pulled from Canadian shelves. She saw it coming months ago, but for now, the tariff war means her brand can't be as competitive in the global market. 'We already knew coming into this, Trump was very clear in what he was going to do, even though we didn't know where the tariffs would hit,' she told NBC News. Brough Brothers Distillery, a Black-owned distillery in Louisville, is facing a different challenge. The company was negotiating with Canada to sell its products north of the border for the first time, but the deal fell through as soon as the tariffs were announced. 'Literally, we're in the middle of expansion,' said CEO Victor Yarbrough. 'Everything's been suspended, they don't have the ability to purchase.' Yarbrough said his company also planned to ship alcohol to France and the United Kingdom, but now he's considering South Africa and Brazil, which are smaller markets. Read more: Gold just hit a historic high of $3,000/ounce on Trump's tariff moves — while US stocks got slaughtered. Here's 1 simple way to prevent more pain within minutes Tariffs don't just affect American exports like bourbon — they also drive up costs for imported goods. While President Trump claims other countries pay the tariff on goods imported into America, it's actually U.S. companies footing the bill — and they often pass those costs on to consumers. "If there is a significant increase in tariffs… those costs will likely be passed onto U.S. consumers and businesses," Brian Peck, executive director of the University of Southern California's Center for Transnational Law and Business, shared with CBS News Los Angeles. The Peterson Institute for International Economics predicts Trump's tariffs on imports from Canada, Mexico and China could raise prices for American households by $1,200 annually. These tariffs affect a wide range of products, including groceries, automobiles and electronics. The Budget Lab puts the estimate even higher, saying average American families can expect to pay between $1,600 and $2,000 more per year. In the automotive sector, tariffs on steel and aluminum could lead to price increases across all vehicles, impacting both imported and domestically-produced models. Experts estimate prices could increase by $4,000 to $12,500, depending on the vehicle. 'There is no way you're going to see a better discount if you wait three months,' Ivan Drury, director of insights at Edmunds told NBC News. 'That's guaranteed.' Food prices are likely to rise as well. According to the USDA, the U.S. is Mexico's most significant agricultural trading partner, with nearly 92% of Mexico's agricultural exports coming to America. As for Canada, the U.S. imported $40 billion worth of potatoes, canola oil, beef, pork and grains from our neighbors to the north back in 2023. If those imports were to be subjected to 25% tariffs, that could drastically increase consumers' grocery bills, depending on how much of the cost businesses pass on to American consumers. As negotiations continue, one thing is clear: tariffs have ripple effects that extend far beyond bourbon exports. Whether it's the cost of a bottle of liquor, a new car or a trip to the grocery store, tariffs can significantly increase household budgets. To navigate rising costs, American consumers can look for alternative brands, buy in bulk or take advantage of sales and loyalty programs to soften the impact on their wallets. Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Protect your retirement savings with these 5 essential money moves — most of which you can complete in just minutes This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Sign in to access your portfolio
Yahoo
12-03-2025
- Business
- Yahoo
Bourbon industry in crosshairs of U.S.-Canada trade war
LOUISVILLE, Kentucky — Distilleries in the heart of America's bourbon industry are finding themselves in the crosshairs of a brewing trade war between the U.S. and Canada. Alcohol made in the U.S. is being removed from store shelves in Canada in retaliation for tariffs placed on its products by the Trump administration. It's also leading to canceled shipment orders and stalled liquor agreements with potential trading partners, some Kentucky bourbon businesses say. The family-owned Michter's Distillery in Louisville has already lost $115,000 in canceled bourbon shipment orders to Canada, its largest foreign market as liquor stores in most Canadian provinces have been asked to remove products from their shelves. 'That's the reality of it,' said Andrea Wilson, chief operating officer of Michter's. 'We would prefer to see less tariffs than more.' Earlier this month, Trump announced a 25% tariff on goods imported from Canada and Mexico — two of the country's largest trade partners — before postponing it amid trepidation of a broader trade war. On Tuesday, Trump amplified his tough tariff talk, saying he would double the tariffs imposed on steel and aluminum imported from Canada. The threat came one day after Ontario's premier, the leader of Canada's most populous province, announced it would charge 25% more for electricity to 1.5 million Americans. Kentucky's bourbon industry pours about $9 billion into the local economy annually, according to the Kentucky Distillers' Association. The state produces about 95% of the bourbon sold in the world, the association estimates. While data on the tariffs' effects is unavailable, U.S. consumers likely won't see a price increase on bourbon for at least a few months, said Marten Lodewijks, president of the U.S. division of the beverage industry data firm IWSR. But Kentucky distilleries could feel an immediate pinch if some of their shipments to Canada are being cancelled, he said. Wilson said she fears her business could face further losses if the tariff war continues. 'If we're not selling to our largest export market, that's a significant impact to our business, and it's very sad for us, because we have friends, we've built relationships in that country for a long time,' she said. Black-owned Brough Brothers Distillery in Louisville is having its own set of problems caused by the tariff war. The company was in the midst of negotiating to sell its products in Canada for the first time, but discussions abruptly ended when the trade war started. The deal fell through 'as soon as the tariffs were announced,' CEO Victor Yarbrough said. 'Literally, we're in the middle of expansion. Everything's been suspended, they don't have the ability to purchase,' Yarbrough said, adding his plans for 2025 were to also ship alcohol to France and the United Kingdom. Now he's considering sending his products to South Africa or Brazil, but Canada would have been the bigger market. 'I'm just like, how can we help get back to square one? How can we facilitate good, neighborly, you know, relationships that we've been having?' he asked. Fawn Weaver, founder of Black-owned Tennessee whiskey brand Uncle Nearest, had her alcohol products pulled off the shelves in Canada, but said she was already bracing for the fallout. Weaver, who contends a tariff war could be predicted during the presidential campaign, said the tariffs mean her business can't be as aggressive in the global market for now. 'As an independent brand, I can't afford those tariffs. I can't afford to absorb it, and I can't pass it on to the consumers,' she said. 'It could be argued that this is exactly what the current administration wants — for all of us to bring in our business in the U.S.' She added: 'We already knew coming into this, Trump was very clear in what he was going to do, even though we didn't know where the tariffs would hit.' Kailani Koenig and Maggie Vespa reported from Louisville, Deon J. Hampton from Denver and Bracey Harris from Mississippi. This article was originally published on
NBC News
11-03-2025
- Business
- NBC News
Bourbon industry in crosshairs of U.S.-Canada trade war
LOUISVILLE, Kentucky — Distilleries in the heart of America's bourbon industry are finding themselves in the crosshairs of a brewing trade war between the U.S. and Canada. Alcohol made in the U.S. is being removed from store shelves in Canada in retaliation for tariffs placed on its products by the Trump administration. It's also leading to canceled shipment orders and stalled liquor agreements with potential trading partners, some Kentucky bourbon businesses say. The family-owned Michter's Distillery in Louisville has already lost $115,000 in canceled bourbon shipment orders to Canada, its largest foreign market as liquor stores in most Canadian provinces have been asked to remove products from their shelves. 'That's the reality of it,' said Andrea Wilson, chief operating officer of Michter's. 'We would prefer to see less tariffs than more.' Earlier this month, Trump announced a 25% tariff on goods imported from Canada and Mexico — two of the country's largest trade partners — before postponing it amid trepidation of a broader trade war. On Tuesday, Trump amplified his tough tariff talk, saying he would double the tariffs imposed on steel and aluminum imported from Canada. The threat came one day after Ontario's premier, the leader of Canada's most populous province, announced it would charge 25% more for electricity to 1.5 million Americans. Kentucky's bourbon industry pours about $9 billion into the local economy annually, according to the Kentucky Distillers' Association. The state produces about 95% of the bourbon sold in the world, the association estimates. While data on the tariffs' effects is unavailable, U.S. consumers likely won't see a price increase on bourbon for at least a few months, said Marten Lodewijks, president of the U.S. division of the beverage industry data firm IWSR. But Kentucky distilleries could feel an immediate pinch if some of their shipments to Canada are being cancelled, he said. Wilson said she fears her business could face further losses if the tariff war continues. 'If we're not selling to our largest export market, that's a significant impact to our business, and it's very sad for us, because we have friends, we've built relationships in that country for a long time,' she said. Black-owned Brough Brothers Distillery in Louisville is having its own set of problems caused by the tariff war. The company was in the midst of negotiating to sell its products in Canada for the first time, but discussions abruptly ended when the trade war started. The deal fell through 'as soon as the tariffs were announced,' CEO Victor Yarbrough said. 'Literally, we're in the middle of expansion. Everything's been suspended, they don't have the ability to purchase,' Yarbrough said, adding his plans for 2025 were to also ship alcohol to France and the United Kingdom. Now he's considering sending his products to South Africa or Brazil, but Canada would have been the bigger market. 'I'm just like, how can we help get back to square one? How can we facilitate good, neighborly, you know, relationships that we've been having?' he asked. Fawn Weaver, founder of Black-owned Tennessee whiskey brand Uncle Nearest, had her alcohol products pulled off the shelves in Canada, but said she was already bracing for the fallout. Weaver, who contends a tariff war could be predicted during the presidential campaign, said the tariffs mean her business can't be as aggressive in the global market for now. 'As an independent brand, I can't afford those tariffs. I can't afford to absorb it, and I can't pass it on to the consumers,' she said. 'It could be argued that this is exactly what the current administration wants — for all of us to bring in our business in the U.S.' She added: 'We already knew coming into this, Trump was very clear in what he was going to do, even though we didn't know where the tariffs would hit.'
