Suntory Holdings Prepares for Potential Whiskey Tariffs
In light of impending Trump tariffs, Suntory Holdings is doubling its whiskey stockpile. CEO Tak Niinami revealed to Yahoo Finance that the company has been accumulating products in Europe to mitigate the impact of potential price hikes.
The move comes amid concerns over a potential trade war that could severely impact the liquor industry. In 2018, the European Union imposed a 25% tariff on American whiskey in retaliation for Trump's tariffs on European steel. The Trump administration responded with a 25% import tariff on single malt scotch whiskey.
Despite the Biden administration suspending the tariffs in 2023, the suspension is set to expire in March 2025. If an agreement is not reached, whiskey exports to the EU could face a 50% tariff.
Suntory Holdings is not the only beverage company preparing for the potential fallout. Johnny Walker maker Diageo and Jameson maker Pernod Ricard have also seen their stock prices decline due to tariff concerns.
Niinami expressed concerns that tariffs could lead to higher consumer prices, especially if they are extended to China. He warned that the US reliance on Chinese goods and the upcoming midterm elections could force President Trump to address inflation, which is a major concern for American consumers.