Whiskey imports on the rocks as threat of US-China trade war weighs on industry
American spirit makers are one of the many industries that could suffer if Beijing follows through with its threat to impose 25 per cent tariffs
When spirits dealer Daniel Taytslin brought his first pallet of American Ragtime Rye whiskey into Shanghai in early April, the 672 bottles faced a five per cent import tariff at China’s customs.
His next shipment from New York could be a lot more expensive as China prepares to slap a 25 per cent additional tariff on hundreds of American products, including whiskey, because of a deepening trade dispute with the United States.
Taytslin and other US whiskey importers say the worsening row is making small traders, as well as big business, very anxious.
Some are accelerating shipments through customs to avoid potential tariff hikes. Others report unusual delays at customs they worry are linked to the trade tensions.
The uncertainty gripping the niche market – US whiskey imports to China were worth only US$8.9 million last year – reflects the wider concern in the US business community in China that the trade stand-off could spark major disruption for American products in the world’s second largest economy.
China’s overall market was worth US$611.5 million in 2016, according to the latest data from wine and spirits analytics firm IWSR, with Scottish whisky imports taking up virtually all of that.