Whisky Advocate: China Prepares To Wage War On American Whiskey

Tucked among a list of 106 U.S. products—including global commodities like corn and soybeans, passenger vehicles, frozen animal heads, and cryptic-sounding chemicals—the sight of “whiskies” surely caused hearts to sink across Kentucky. Yesterday, shortly following the announcement of plans by the Trump administration to impose tariffs on an additional $50 billion in Chinese goods, China’s Ministry of Commerce fulfilled its promise of retaliatory action by announcing its own list of U.S. imports to receive increased tariffs of 25%.

It’s a sharp turn of events from February of this year, when Christine LoCascio, senior vice president of international affairs for the Distilled Spirits Council of the United States, spoke with Chinese news agency Xinhua and expressed optimism about continued growth for U.S. spirits in China: “China is a relatively open market, and import tariff is only 10%,” she said. Neither the U.S. nor China have announced the dates on which the new tariffs would take effect.

American whiskey is a fledgling category in China, dwarfed by more mature imported spirits segments like Cognac and Scotch whisky. Last year, China imported just under $6 million worth of American whiskies, according to the U.S. Department of Commerce. By comparison, American whiskey’s exports to Japan were just under $100 million last year.

Still, some see ample potential for the American whiskey category to blossom in China over the long term. Suntory Holdings president Takeshi Niinami told SND last year, “China has traditionally been more of a Cognac market, but Bourbon’s sweet taste fits Chinese palates.” If the U.S. and Chinese governments stick to their current tariff plans, however, American whiskey’s road to a robust presence in the country will become much steeper. Whisky Advocate has more on what China’s proposed tariffs could mean to U.S. distillers.

Tagged : American whiskey, trade war, Whisky Advocate

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