Premium spirits company Luxco has brought forward its transatlantic shipping schedules of American whiskey amidst uncertainty about trade tariffs between the UK, EU and US.
As the question of trade tariffs under a new (or returning) US President looms, the Missouri-based company is accelerating the movement of its flagship Kentucky Bourbons. These include Yellowstone Select (46.5% abv), Rebel 100 (50% abv) and Ezra Brooks 99 (49.5% abv), as the company aims to protect retail selling prices for consumers.
“The inventory that we had scheduled for shipping in quarters two and three this year will now arrive in Europe before the end of March,” Greg Mefford, MD of International Business at Luxco, explained. “We’re going early to minimise how any future changes in trade tariffs impact the pockets of American whiskey fans across Europe and the UK.
“There’s uncertainty about what the US government will or won’t do with trade tariffs and a looming 31 March deadline. After this date, American whiskey entering Europe will be exposed to a 50% tariff. We’re working on cost and pricing strategies to mitigate this, and early shipping is one option that we’re pursuing.”
In December 2023, President Biden signed an agreement with the EU that suspended retaliatory tariffs on US distilled spirits and EU steel and aluminium. The suspension for US distilled spirits entering the EU is due to end on 31 March, with any changes to this possibly hinging on renegotiations for US tariffs on imports of EU steel and aluminium.
Mefford continued: “Retaliatory trade tariffs seem counterproductive for local and international markets, whether that’s the country exporting or importing. We welcome international trading agreements that are pro-trade and pro-consumer, which avoid pricing people and businesses out of markets, and support growth opportunities throughout supply chains.”
Harpers last spoke to Luxco following the news that specific identity regulations for ‘American single malt whiskey’ were to come into effect on Monday 19 January 2025.
As a result of the new regulations, Kentucky-based Limestone Branch Distillery, which is part of Luxco, recently announced it was increasing exports of its Yellowstone American Single Malt Whiskey (pictured) to the UK and Europe by 22% in order to keep up with growing demand for the expression.