Over the past few months headlines repeatedly scream about an impending trade war between the U.S. and, depending on the week, just about everybody else. Among the debated questions – who really pays the higher tariffs? Of course, the media could never be helpful enough to explain that the ultimate consumer price/producer profit impact will vary with the product in question, strength of demand, availability of alternate products or sources, etc. Suffice it to say that adding costs is rarely a good thing, and that increased government revenue from tariffs will almost always be an expense shared in varying degree by buyers and sellers.
The beverage alcohol business is in the unenviable position of being a weapon/victim of both the U.S. and many trading partners. Alcohol beverages often seem to be selected for new tariffs that will get the attention of the other side. Even though trade disputes about unfair practices impacting free trade in alcohol beverage products are generally fairly minor, we keep getting drawn into the battles we initially played no role in.
