Bourbon and Whiskey Tariffs How Could America’s Favorite Spirits Be Impacted By Tax

With the Trump administration announcing (and then promptly postponing) tariffs on several global importers this week, it’s an extremely uncertain time for the local U.S. whiskey and spirits economy. As the threat of a major trade war looms, sparked by the authorization of executive orders imposing 25% tariffs on liquor from Canada and Mexico, we look at the implications on the industry and how the landscape might look, for both locally produced and imported liquor, should these tariffs come into effect.

A tariff is a tax that the federal government imposes on goods or services imported from other countries. A whiskey tariff is a tax on imported whiskey (all imported liquor from the abovementioned countries is being taxed) coming into the United States, discouraging buyers from purchasing imported goods, and encouraging them to buy local.

The proposed 25% tariff on Canadian and Mexican goods covers all liquor being imported into the U.S. by these countries, the United States’ closest key trading partners. To put this in whisky terms, if a $100 bottle of Crown Royal is imported into the U.S. from Canada then that bottle will incur a 25% tariff on the product cost, payable by the importer to the U.S. government. In other words, a $100 bottle becomes a $125 bottle before it has reached the market.

Now let’s imagine in this hypothetical scenario that the importer typically sells the $100 bottle for $150. Due to the proposed 25% tariff on imported liquor, the cost increases to $125. At an increased cost, it’s unlikely that the retail price will remain at $150, instead increasing proportionately to the rising cost of goods. So the retail price increases for the end customer. In other words, what used to be a $150 bottle at the liquor store is now $175 or more, and the consumer ends up paying for it at both ends.

The new administration’s proposed tariffs on Canadian and Mexican goods were immediately met with counters in the form of same-value tariffs (25%) on U.S. whiskey and liquor products.

Counter tariffs are expected to cause considerable disruptions in the supply chains of spirits companies. Many producers are likely to implement cost-cutting measures to mitigate the financial impact, however, these strategies may only offer temporary relief and increased costs are likely to be passed on to consumers in the form of higher retail prices. “Well, I’m a bourbon drinker and don’t buy Canadian Whisky anyway!” This is a fair point, but for local businesses selling Canadian whisky or Tequila, costs will increase and end-consumers will end up fronting the bill. “So we should just buy local bourbon whiskey and liquor?” You should buy local, but let’s not forget the huge impact that counter-tariffs from Canada and Mexico could have on the U.S. whiskey industry.

Whiskey is one of the largest exported goods in the U.S., and counter-tariffs could significantly impact the local whiskey economy. If whiskey exportation becomes more costly, then local prices aren’t immune to increased prices. This is of course speculative what with the current pause in place, but given the whiskey industry saw a 5.5% decline in 2024, another barrier to growth in the form of counter-tariffs will certainly result in a retail response.

As we’ve touched on above, retaliatory tariffs and the increased costs of exporting bourbon and American whiskey from the U.S. will lead to a complex web of economic consequences that could disrupt the global spirits market. Supply chains are under threat, and with the financial implications of greater export costs, distillers and producers looking to recoup lost revenue from the cost of exportation could be forced to increase local prices as a means of regaining lost revenue. This means buying local whiskey becomes more expensive as a result of these initial taxes on imported liquor.

The Governor of Kentucky made a statement on February 4th 2025 that “harmful tariffs are putting our bourbon industry in danger”, suggesting Trump’s authorization of tariffs in Canada and Mexico has “led to retaliatory actions on Kentucky bourbon that will be costly, disruptive and harmful”, urging Kentucky’s congressional delegation to support the industry and intervene.

Similarly, the United States Distilled Spirits Council’s statement on February 1st 2025 requests a dialogue to address the potential tariffs on distilled spirits and calls for their prevention. The Council’s statement that “U.S. tariffs on imported spirits from Canada and Mexico will significantly harm all three countries and lead to a cycle of retaliatory tariffs that negatively impacts our shared industry”, a bleak insight into the potential fallout of introducing tariffs.

The authorization of liquor tariffs has thus far only triggered retaliatory measures from Canada and Mexico (excluding China), further complicating international trade dynamics. It’s a similar move to the one sanctioned in 2019 during Trump’s previous term, where he introduced scotch whisky tariffs amidst a trade dispute with the EU. It’s estimated that the scotch whisky industry took a £600 million hit during this time, with the U.S. being Scotland’s primary whisky export market.

For scotch drinkers, the tariffs imposed on Canada and Mexico are a warning sign (so stocking up now is a consideration). If a blanket 25% tariff is reintroduced and imposed on scotch whisky imports then your favorite scotch is set to become significantly more expensive. With that being said, given the UK is no longer part of the EU, it remains to be seen what sort of fallout could potentially be had on this sector of the liquor industry.

Major beverage companies are bracing for the impact of these tariffs with Diageo (Johnnie Walker, Don Julio etc.) pre-emptively withdrawing its medium-term growth targets due to the uncertainty around tariff-related fallout. According to the Financial Times, the company has estimated a potential $200 million annual profit reduction if the tariffs remain in place. Uncertain times indeed.

With so much early opposition and pushback from within the industry, it’s hard to gauge whether these tariffs will meaningfully come into effect. A 30-day pause has already been ratified, meaning we won’t have the full picture for at least another month. One thing is certain, however, if these tariffs do come into effect, the bourbon and whiskey industry globally will look quite different to the one we see today. Let’s just hope it’s not you and I footing the bill…

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Eagle Rare 12 and Weller 18 Bourbons The Best Whiskey Releases of 2025

Buffalo Trace Distillery has announced two significant releases for 2025 with the submission of Eagle Rare 12 Year Bourbon and Weller 18 Year Bourbon labels via TTB. As if the Kentucky powerhouse’s 2024 expansions to the Taylor and Weller lineup weren’t already enough (introducing the much anticipated Taylor Barrel Proof Rye and uber-premium Weller Millennium), these two new additions to the ever-popular Eagle Rare and Weller lines bring even more variety to the core Buffalo Trace Distillery bourbon range and are sure to become hot commodities in 2025 amongst bourbon collectors and connoisseurs. While this undoubtedly diversifies the Weller and Eagle Rare portfolios, giving whiskey lovers more choices and options, what does introducing these new releases mean for the rest of the collection and will they live up to the hype?

Eagle Rare 12 Year Old Bourbon Whiskey is a 95-proof straight bourbon whiskey distilled and bottled by Buffalo Trace Distillery that represents an evolution of the standard Eagle Rare 10 Year Bourbon (90-proof). It joins the entry-level Eagle Rare 10 and becomes a middle point between this core offering and the highly limited Eagle Rare 17 Bourbon from the annual BTAC. Beyond this sit the Double Eagle Very Rare 20 Year Old Bourbon and Eagle Rare 25 Year Old Bourbon, making Eagle Rare 12 the fifth addition to this collectible and sought-after silo.

Rumours about this new bottling have already started to emerge, with suggestions that Eagle Rare 12 will be distillate that doesn’t meet the exacting standards of the elite Eagle Rare 17 and beyond, this rumour is of course mere speculation at this point (though it does make a lot of sense). Eagle Rare 12’s label suggests the tasting notes will resemble a “sweet, oaky nose, a full, complex body with subtle vanilla notes, and a long-lasting, rich finish. Reminiscent of a fine port wine, this rare whiskey is perfect for savoring neat, or over ice”.

While an additional two years in the barrel and a higher proofpoint of 95 will surely elevate the Eagle Rare profile, the implications of introducing the Eagle Rare 12 and what this means for ER10 pose an interesting conundrum… more on that below.

Weller 18 Year Old Wheat Whiskey is a 90-proof straight wheat whiskey composed of a minimum of 51% wheat in the mashbill. Weller 18 Year joins the esteemed W. L. Weller lineup, which features Weller Special, Weller Antique 107, Weller Full Proof, Weller 12 Year Old, Weller Single Barrel, Weller CYPB, William Larue Weller (BTAC), Daniel Weller and Weller Millennium.

Weller 18 Year Whiskey is the in the Weller lineup (with Weller 12 the first age stated bourbon whiskey), and unlike the abovementioned bourbons in the W. L. Weller range, is a 51% wheated whiskey rather than a wheated bourbon (51% corn). Expected to fetch a premium in the Weller vertical price spectrum, Weller 18 will likely sit somewhere in between William Larue Weller, Daniel Weller and Weller Millennium when it comes to price and accessibility. There’s no doubting the pedigree of this hotly anticipated whiskey, which is why it’s likely to become one of the rarest and most sought-after releases of 2025. While the bottle outrun on Weller 18 is sure to be extremely limited, we can assume this will have some sort of impact on the wheat reserves available to Weller’s core range, particularly the more premium releases.

It’s been well-documented over the past few years that Buffalo Trace intends to increase its production capacity and accelerate output, much to the fanfare of the bourbon community and adoring disciples of the church of Buffalo Trace. More liquor being produced means more accessible whiskey prices right? For the most part, yes, but unfortunately that’s not the full picture.

The introduction of Eagle Rare 12 at a similar age-statement to Eagle Rare 10 means that the existing distillate will likely be shared between the two iterations, which in turn means the release of Eagle Rare 12 comes at the expense of Eagle Rare 10 availability. So a new more premium core offering has the potential to increase the scarcity of its younger mainstream sibling. Not exactly a desirable outcome for bourbon fans. With Weller 18, the impact will be less noticeable on a core/mainstream level, but the pinch may be felt towards the more premium end of Weller’s spectrum with wheat distillate reserves being diluted across a greater number of products.

In any case, the announcements of Eagle Rare 12 and Weller 18 are exciting, and we’re looking forward to seeing if they juice is worth the squeeze and whether or not these bottles do end up becoming two of the best whiskey releases of 2025! Are you looking forward to these releases? Let us know your thoughts in the comments!

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The Most-Hyped Whiskeys of the Month (August)

It’s not always about the classics… quite often new, exciting and innovative whiskeys see meteoric rises in popularity, which in turn impacts their availability and inevitably their price. The hype train can often lead to an explosive gain in a bottle’s popularity, and when this happens - you will have hoped to have already secured your bottle before it becomes unattainable, such is the nature of the beast.

So what are the most hyped whiskeys this month? Below we take a look at the talk of the town, showcasing a few of the most , most sought-after and most-searched-for whiskeys in the United States.

Blue Run Spirits

The whiskey that saw the largest rise in popularity this week was Blue Run Spirits, and namely the recently released 14 Year Old Small Batch Bourbon iteration. A critically acclaimed double gold medal winner at this year’s San Francisco World Spirits Competition, the 14 Year Old Small Batch Bourbon earned top honors at the prestigious SFWSC in the small-batch bourbon 11 years and older category - one of the most hotly contested categories in modern whiskey making.

The 3rd offering from Blue Run’s collection, and the highly anticipated sequel to the 13-year-old small batch and 13.5-year-old single barrel, the 14 Year Old Small Batch Bourbon is something to behold, and brings forth the same mature complexity and inspired craftsmanship for which the first two offerings have become so well renowned. Weighing in at 113 proof, the same ABV that the inaugural release was bestowed with, the 3rd release possesses a silky smooth mouthfeel and a flavor profile that oozes character and charisma.

Expect sumptuous sweetness on the nose, followed by subtle baking spice, a fleeting hint of French toast that slowly transforms into a complex balance of white pepper, cherry, and caramel, before a long, lavish finish that sings on the throat and caresses the taste buds. There’s no wonder it’s one of the most hyped bourbons this month, a top-of-the-class award winner, and a brand that has garnered cult status with its designer and executive credentials.

Penelope Bourbon

Next up on the most-hyped list, we come to Penelope Bourbon, whose inspired and oft-innovative releases featured widely in bourbon circles and conversation throughout August. The MGP distilled brand’s barrel strength was a double gold medal winner in 2020, and the 7th iteration of this barrel strength silo was recently made available. With a formidable resumé and countless references that lend weight to this already award-winning brand, it’s easy to see why Penelope was talked about at length this month. Interestingly, the new barrel strength wasn’t the only Penelope Bourbon offering to gather whiskeyphiles’ attention this month, with their Rosé Cask finish also earning itself plaudits and attention following its annual July release (it would seem that this year’s batch is rather popular).

The barrel strength is a potent 115.2 proof, four-grain straight bourbon whiskey that combines three separate mashbills and ages these for between 3.5-5 years to produce a punchy, pronounced bourbon whiskey beset with hot heat and offering considered complexity. Expect a smorgasbord of flavor, spanning from sweet caramel and maple syrup to charred sugar and crème brûlée, which then gives way to an emphatic heat and subtle spice both of which linger and laze about in the finish to keep you wanting more and more.

On the other hand, the Rosé Cask Finish Bourbon presents a more novel approach to whiskey making and is no doubt a bottle for those with an adventurous side. Using French Grenache Rosé Wine Casks from the Southern Rhône region to finish their signature four-grain blend, this delicate and elegant 94 proof bourbon is aged between 3-4 years and presents an inspired and refreshing tasting experience. Expect generous floral and botanical notes that resound throughout the nose, body and finish, tying together the classic cream, caramel and vanilla for which Penelope has become renowned. Sweet and refreshing, yet rich and luxurious, there’s good reason for this bottle to have been one of the month’s most sought-after and searched-for bottles.

Penelope Bourbon is certainly a brand to look out for and an up-and-coming powerhouse in unique and innovatively finished bourbon whiskeys, perhaps this one isn't all talk after all.

Chicken Cock Whiskey

Thirdly, and lastly, we come to Chicken Cock Whiskey, the ‘famous old brand’ and a distiller with over 150 years of history, now resurrected and producing fine Kentucky whiskey once more - so good that they have recently been nominated for USA Today’s Best Craft Whiskey Distillery of 2021 alongside such names as Heaven Hill, High West, Redwood Empire, and Widow Jane. This nomination once again places Chicken Cock amongst esteemed company, and reminds us of the quality and caliber of their Paris, Kentucky whiskeys.

The Kentucky Straight Bourbon Whiskey is a throwback to the prohibition era and is imbued with the charisma and charm that makes Chicken Cock’s story so interesting. Distilled, aged, and bottled in Kentucky, while it may only weigh in at 90 proof, there is no denying this bourbon packs a punch, offering heat and harmony between smooth sips that possess notes of sweet caramel, smooth cream, and butterscotch, as well as a faint and lingering nod to wafer biscuit and the mandatory hint of oak.

Though it may face an uphill battle in its claim at Best Craft Whiskey Distillery in the country, it is with good reason that Chicken Cock is one of the most talked-about bourbons this month. It may well be one of the most talked-about bourbons next month too!

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