Distilleries in Kentucky, the heart of America’s bourbon industry, are feeling the effects of a trade war between the U.S. and Canada. American-made liquor has been removed from store shelves in Canada in retaliation for tariffs imposed by the Trump administration. This has led to canceled shipment orders and stalled liquor agreements for Kentucky bourbon businesses. The family-owned Michter’s Distillery has lost $115,000 in canceled bourbon shipment orders to Canada, their largest foreign market. The Kentucky Distillers’ Association estimates that the state’s bourbon industry contributes about $9 billion annually to the local economy. While U.S. consumers may not see an immediate price increase on bourbon, Kentucky distilleries are facing potential losses if shipments to Canada are being canceled.
Black-owned Brough Brothers Distillery in Louisville was negotiating to sell their products in Canada for the first time, but the trade war caused discussions to end abruptly. The company is now considering other markets like South Africa or Brazil. Similarly, Black-owned Tennessee whiskey brand Uncle Nearest had its products pulled off the shelves in Canada due to the tariffs. Founder Fawn Weaver is concerned about the impact on her business in the global market. She believes the current administration may want businesses to bring their operations back to the U.S. The tariffs are causing uncertainty and challenges for these distilleries, affecting their ability to expand and engage in global trade.
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