The world of whisky trading isn’t only about the quality of the drams, but also about external factors like taxes and tariffs. Recently, new import tariffs have been introduced by the United States, which are affecting the whisky industry globally. In this blog, we will explore what these whisky tariffs are, how they impact the market, and what it means for you as a whisky lover.
What are Tariffs and Why do They Exist?
Tariffs are additional taxes imposed on goods that are imported by a country from another country. The U.S. government recently introduced higher tariffs on imported products, including whisky from Scotland, as part of a broader trade conflict. These whisky tariffs affect the price of whisky and the availability of certain bottles, especially exclusive and older releases. Production cost in the country of origin remains the same, unless tariffs also impact base materials. However, because the tariffs are an additional expense on top of production and transportation, the final cost to consumers will increase. The intent behind tariffs, historically, is often to protect local producers that have difficulty competing with foreign competitors.
The Impact of Tariffs on the Whisky Trade
The United States has previously imposed a 25% tariff on Scotch whisky. These measures had far reaching consequences for the whisky industry, including a decline in whisky exports to the United States. Prices increased, and some rare bottles were temporarily hard to come by. The tariffs were suspended temporarily in 2021, but now we face the challenge of these whisky tariffs potentially being reinstated in 2025.
What are the Consequences?
- Higher prices: the tariffs can lead to higher prices for non-domestic whisky bottles in the United States. This means that as a buyer, you may end up paying more for bottles from Scottish distilleries such as Ardbeg, Glenfiddich and Macallan. If other countries outside of the U.S. impose countertariffs targeting American Whiskey, then that will also lead to higher prices of American whiskey for buyers outside the U.S.
- Limited availability: especially rare or limited-edition bottles could become harder to find, as the tariffs disrupt the trade. Higher prices usually lead to a lower demand, which means that internationally traded whisky will likely decrease. These consequences promote the availability of domestic limited editions, but will make these same limited editions even more rare in other countries
- Impact on collectible value: for collectors, this could be both a challenge and an opportunity, as the value of bottles could fluctuate based on demand and market availability
How do These Tariffs Affect Wannawhisky?
At Wannawhisky, we try to bring buyers and sellers of whisky together. The tariffs may affect the prices and availability of certain bottles, especially those coming from Scotland or other countries subject to U.S. tariffs. For both our buyers and sellers, it’s important to be aware of these market conditions when buying or selling whisky on our platform.
We remain committed to enabling maximum transparency and fair prices between buyers and sellers, so you as a whisky lover can make the most out of your whisky collection. Whether you’re an experienced collector or just starting out, it’s essential to understand how these external factors impact the whisky market.
What Can You Do?
As a whisky lover, it’s important to stay informed about market conditions. What can you do to make the most of the situation?
- Stay informed: follow the developments surrounding the tariffs and the whisky trade. Knowledge is power!
- Collect with foresight: are you eyeing a rare bottle? It may be worth buying sooner rather than later before prices rise further due to tariffs
- Buy smart: platforms like WannaWhisky offer a great opportunity to buy and sell bottles. Be sure to keep an eye on prices and market trends
Conclusion
The tariffs imposed by the U.S. on Scotch whisky could have a significant impact on the market. As a whisky lover, it’s essential to understand the consequences of these measures so you can make smart choices when buying and selling whisky. At WannaWhisky, our involvement in the world of whisky means we can spot, anticipate and inform you about trends and ensure that you always have access to the information you need.
