NASHVILLE, Tenn. (WTVF) — President Donald Trump recently warned of consequences for countries placing new tariffs on American-made goods.
"We're going to be doing reciprocal tariffs. So whatever they charge us, we're charging them. Nobody can complain about that," he said.
The announcement comes after the U.S. imposed 25% tariffs on all steel and aluminum imports overnight.
In response, the European Union and Canada announced retaliatory tariffs of their own.
Canada is taxing more than $20 billion worth of products like steel, computers and servers, and cast-iron goods. The EU is targeting $28 billion worth of American goods including beef, motorcycles, jeans, and whiskey.
Whiskey, as many of us know, is a major export for Tennessee. Distilled spirits have long been the state's pride and joy.
According to a Department of Agriculture reportfrom 2022, Tennessee is the number one exporter of distilled spirits, valued at over $800 million.
But President Trump's imposed tariffs on several countries, and the subsequent retaliatory tariffs, boil down to bad news for whiskey makers.
"It directly impacts those that are exporting to the impacted countries," explained Rob Pinson, an attorney who represents at least 30 Tennessee distilleries. He suggested major exporters like George Dickel or Jack Daniels may take the biggest hit.
That's as Canadian officials also ordered much of American whiskey off the shelves in response to tariffs last week.
In addition, smaller distilleries may struggle with tariffs in a different way, as prices rise for raw materials.
"When they buy products that might be coming from other countries, like China, Mexico, Canada, Europe...like glass," said Pinson. "So the tariffs we impose on those countries could make those items more expensive or harder to get because now they cost a lot more."
Even though companies will work to absorb the cost, Pinson says prices could rise for the customer down the line.
He also foresees distillery employees and farmers getting the brunt of the impact.
Kentucky distilleries are feeling the strain as well. Kentucky Governor Andy Beshear recently said he wants Canadian leaders to reconsider their retaliatory tariffs on American liquor, including the state’s signature bourbon. He says he has talked to Canadian officials, urging them to consider alternative responses that don't impact Kentucky businesses.
Do you have more information about this story? You can email me at nikki.hauser@newschannel5.com.
Fundraising efforts are underway in Brownsville and Nutbush, TN to build a statue for a major superstar who was raised there, Anna Mae Bullock. You probably know her by her stage name, Tina Turner. I was a huge fan of Tina and glad to see efforts are underway to showcase more of her ties to West Tennessee.
-Lelan Statom
