Free Trade

Jack Daniel's Says It Will Raise Whiskey Prices in Europe Due to E.U. Tariffs

The E.U. retaliated against Trump's steel and aluminum tariffs. Now, whiskey drinkers will pay the price.

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In retaliation against President Donald Trump's tariffs on steel and aluminum imports, the European Union has imposed tariffs on a number of U.S. goods. Now whiskey drinkers will pay the price.

On Monday, as Reason's Eric Boehm reported, iconic American motorcycle brand Harley-Davidson announced it would shift some of its manufacturing overseas so as to avoid the 25 percent tariffs imposed by E.U. officials on American made goods.

Now, the latest major American company to take action in response to those tariffs is the Brown-Forman Corporation, which makes Jack Daniel's Tennessee Whiskey.

Brown-Forman spokesperson Phil Lynch told the Associated Press on Monday that E.U. consumers should expect to see a price hike of roughly 10 percent on Jack Daniel's products. The increases are set to go into effect over the next several months, and prices will vary as local sellers decide how much they plan to charge, Lynch said.

About one-fourth of Brown-Forman's sales come from Europe, so the E.U. tariffs have the potential to significantly hurt the company's bottom line.

The E.U. was not alone in imposing 25 percent tariffs on American goods. Mexico did the same, but since Brown-Forman recently opted to raise the price of Jack Daniel's in that country, another price hike is not imminent, Lynch said.

These new trade barriers, which affect goods like bourbon, orange juice, and motorcycles, were a response to tariffs imposed by Trump on steel and aluminum imported into the U.S.

Trump justified the new tariffs by saying that he was looking to bring jobs back to the U.S., but his actions have made many American CEOs wary of a trade war. As a result, some domestic employers are reportedly looking to scale back on hiring, according to CNN.

However, Trump has defended his hardline stance on trade and even criticized Harley-Davidson on Tuesday for moving some of its production outside the U.S.

On Twitter, Trump accused the company of "using Tariffs/Trade War as an excuse" to move jobs out of the country.

He also warned the company that "they won't be able to sell back into U.S. without paying a big tax!"

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  1. Jack Daniels is not raising its price in Europe, Europe is raising the price on Jack Daniels with tarriffs

    1. Well, it is not clear in this article or the tweet length comment from ABC in the link if the (up to) 10% ‘price’ increase is a reflection of part of the 25% tariff, or in addition to it. Both reports are equivocal.
      Taken as written, the headline here says that the price will rise, and the rise is due to imposition of the tariff. So together EU consumers will see a total increase of over 25%. And then the article muddies that up. And the link is typical ABC mumbling without meaning.

      1. Tariffs are not charged to the consumer. They are charged to the importer, Brown Forman in this instance. Taxes don’t typically get passed on 100%.

        The total cost to the retailer seems to be going up 10%, and it’s up to the retailer to decide how much to pass on and how much cost they need to eat.

        1. All costs are always passed on to the customer or the business goes out of business.

    2. The article is not super clear. But it appears to be both tariffs and a price increase.

      Sounds like the makers of JD are anticipating a decline in sales volume, but are attempting to offset and revenue decline with a price increase. Somewhat counterintuitive, but entirely feasible depending on the elasticity of demand for JD

      1. …offset any revenue…

  2. Tennessee whiskey is rotgut-swill.

    1. If it’s not Scottish, it’s crap!

      1. It’s all good. It’s aaaaaaalllll good.

        1. Seriously. If there’s alcohol in it, I’m not sure what the complaint is

          1. People like to throw money down rat holes. They prefer fancy rat holes for the larger wads of cash.

            1. Yeah man, I cannot recall the details, or a link, but a YUUUGE percentage of foo-foo-the-snu people who CLAIM they can tell the difference, between low-brow and high-brow beer, wine, whiskey, etc., can NOT really, per blind taste tests, ESPECIALLY when they get drunk! And I have heard from bartenders about taking the JD bottle and filling it with Evan Williams, per management instructions, and no one ever catches on.

              I bought some margaritas at a restaurant / bar once that was supposed to be top-dollar, but it tasted like Trump’s edible undies, so I buy NO more booze there!

              (PLEASE do NOT ask me how I know what Trump’s edible undies taste like; I was desperate in that incident!!! ALSO do not ask me about that incident with the hamsters and the declawed gerbils and the honey-mustard-mayo, and the dwarf hippos! Do NOT ask!!!!)

              1. Honey-mustard-mayo? Ew. EWW.

                Mustard or mayonnaise, CHOOSE ONE, DO NOT MIX THEM!

              2. I think once you get into mixed drinks it is truly, truly indistinguishable. Even for those rare few who can consistently tell apart straight liquors.

                Also, I had a bar tender tell me that their Grey Goose was just normal vodka passed through a Brita filter. So this kind of stuff is common.

              3. (PLEASE do NOT ask me how I know what Trump’s edible undies taste like; I was desperate in that incident!!! ALSO do not ask me about that incident with the hamsters and the declawed gerbils and the honey-mustard-mayo, and the dwarf hippos! Do NOT ask!!!!)

                Come on man, you can’t pique our curiosities like that and then leave us hangin’! Inquiring (and depraved) minds want to know!

                1. Well OK then, it was a dark and stormy night many years ago; I was at the bar drinking Jack Daniels (or at least, that’s what they told me that it was). Bill and Hillary and Chelsea and “Iron Pants” Maggie Thatcher cum up to me; they ask if I would like to have a twenty-some with them-all, and their dwarf hippos.
                  They say “ya gotto try everything at least once”, and “that which does not kill you, makes you stronger”, and so I said OK. Chelsea grabbed me at one end and Maggie grabbed me at the other end, kissing me passionately, and they dragged me off to their UFO, where I passed out.
                  When I woke up I was in the middle of them AND all of their dwark hippos! It was a night that I will never forget! I now know that I have a LOT more bodily openings than I had ever DREAMED of! I can’t tell you about the hamsters and the declawed gerbils and where we shoved them, because Bill Clinton has a patent AND a trademark on that!

              4. After a couple drinks it starts to matter less. Top-shelf vodka is a total joke. Other things taste different depending on the barrels they age in or whatever, and I for one can easily tell the difference between a VS cognac and a VSOP or XO. Wine varies objectively in quality but not to the extent that prices would have us believe. Beer is so varied in taste that it’s pretty much totally subjective what counts as good or not. I like almost all beer except 3 point pisswater that is thankfully going the way of the dodo.

                1. Someone please shoot me, I am actually agreeing with Tony on something for once.

                  Still (pardon the pun), JACK AIN”T BOURBON.

              5. “And I have heard from bartenders about taking the JD bottle and filling it with Evan Williams, per management instructions, and no one ever catches on.”

                It is illegal in nearly every US state for a bar to re-fill liquor bottles. Each bottle has it’s own tax stamp. If they get caught doing this, they can lose their liquor license.

                1. Evan Williams is Jack Daniels’ retarded cousin.

                2. It is illegal in nearly every US state for a bar to re-fill liquor bottles. Each bottle has it’s own tax stamp. If they get caught doing this, they can lose their liquor license.

                  Fascists.
                  It’s also fraud to sell mislabeled products. But that should be for the market to police, right?

              6. Evan Williams is superior to Jack.

                1. Evan Williams is superior to Jack.

                  It’s all just wood extract.

              7. people who CLAIM they can tell the difference, between low-brow and high-brow beer, wine, whiskey, etc., can NOT really, per blind taste tests, ESPECIALLY when they get drunk!

                I don’t know about when someone is drunk, but I’ll bet damned near anyone can taste the difference between Taaka and Grey Goose. A beer fan will definitely be able to taste the difference between Coors and a craft/microbrew pilsner. Maybe not all liquors or wines will work like that, but you usually can tell the difference between something that’s shit compared to something that’s good. Once you get to the good or very good stage, there are definitely rapidly diminishing returns.

  3. JD is just another overpriced coke mixer.

    1. Water is for washing.
      Ice is for treating bruises.
      Just pour the whiskey into a glass and hand it over.

    2. I’d wager most Tennessee whiskey is mixed with coke, gottas kill the taste.

  4. JD is delicious, but I can’t see spending all that money. Buy Evan Williams instead… It is only slightly higher-priced than flat-out rot-gut, but it tastes NEARLY as good as JD!!!

    1. A man with fine taste.

      Here’s my recent gut-rot lately

      Also, I can’t seem to find Papov anymore, and I don’t know what happened.

    2. Evan Williams is a bourbon. Jack is not.

  5. Let’s see, HD has a factory in India why? Oh, Indian tariffs.
    But US counter tariffs are evil, right?
    Trump has not started any trade wars, he has merely begun to shoot back.

    1. Let us know when we see a victory.

      1. China already asked to talk to the USA about lowering trade restrictions.

        Sometimes it just takes longer to get stubborn European socialists to the discussion table.

        1. Will China’s talk pay soy growers’ mortgages?

          1. Farmers in America have crop insurance.

      2. Protectionism taken to its logical conclusion is North Korea.

    2. So increasing taxes is now good and libertarian, right?

      These aren’t counter tariffs. Well, I guess the new ones are counter-counter-counter tariffs. But the original ones were national security, or did we forget the fig leaf?

  6. I’ll say it again… I seem to remember a while back being told in the comments section of a different article that foreign tariffs only hurt the foreign countries that enact them and the US should not attempt to coerce those countries to get rid of them.

    1. Tariffs hurt both the exporter and the importer. The details get fuzzy, occasionally they can provide benefit to the importer, but usually are a net negative. And, as a whole, they hurt the importer more. The Trump tariffs seem designed to hurt as many Americans as possible.

      But, he did manage to save the jobs at ZTE!

  7. I despise JD, but that’s because I used to like it enough to play a game of shots checkers. The last JD I ever drank ended up on the front stoop at the house where that party was happening. Just thinking about its peculiar flavor makes me gag a little.

  8. Frankly, if they drink JD they deserve what they get.

    (Also, SQRSLY is right – Evan Williams is a much, much better cheap whiskey.)

  9. So far, those hurt by the tariffs seem to be likely Trump supporters. Good aim by our trading partners . . . and cue the tiny violins for those learning the meaning of counterproductivity the hard way.

    Let them eat their Trump hats!

    1. Won’t those get hit by the Made in China tariffs?

    2. So far, those hurt by the tariffs seem to be likely Trump supporters. Good aim by our trading partners . . . and cue the tiny violins for those learning the meaning of counterproductivity the hard way.

      Seems to be deliberate act of the socialist E.U.

  10. Hey, The Donald was right. I’m tired of winning now. Can we please stop?

    1. I’ll drink to that!

  11. In retaliation against President Donald Trump’s tariffs on steel and aluminum imports, the European Union has imposed tariffs on a number of U.S. goods.

    More dumb arguments from Reason.

    If its Trump’s fault for raising US tariffs and that being bad, why isn’t it the EU’s fault for raising their tariffs and that is bad?

    Its also lying to imply that tariffs and trade restrictions were at zero before Trump came along.

    1. Most US tariffs were part of negotiated trade agreements, as are the ones that US companies are subject to.

      Sometimes, US Presidents make dumb decisions. Bush did steel tariffs. The US lost jobs because of it, and the other countries complained and they were quickly reversed. Same thing with Obama’s tire tariffs (those seem to have lasted longer).

      The reason that its bad is because it costs jobs and hurts consumers. It’s also the government picking winners and losers — Republicans and Libertarians were against that until Trump came along.

      1. Any ALL trade agreements suck for the USA. The USA can do better and get lower trade restrictions if we try.

        Trade restrictions are bad and so are trade restrictions.

  12. “These new trade barriers, which affect goods like bourbon, orange juice, and motorcycles, ”

    Jack ain’t Bourbon.

  13. Their livers rejoice.

  14. The E.U. retaliated against Trump’s steel and aluminum tariffs. Now, whiskey drinkers will pay the price.

    Trump retaliates against E.U. trade barriers with steel and aluminum tariffs. There fixed it.

    As a result, some domestic employers are reportedly looking to scale back on hiring, according to CNN (Reason).

    CNN – Reason, difficult to see the difference.

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