A Spirited Struggle (Whiskey & Tariffs)

Speaker: 00:00:07

A glass of whiskey held in the firelight.

2

: 00:00:09

It glows with a warmth that speaks of

history, of craftsmanship, of shared

3

: 00:00:13

moments across continents from the

Scottish Highlands to the American

4

: 00:00:17

heartland from the bustling streets of.

5

: 00:00:19

Tokyo to a quiet pub in Dublin,

whiskey transcends borders.

6

: 00:00:24

It's a drink that unites us in

appreciation of its complex flavors,

7

: 00:00:27

its rich aromas, and the stories

it carries within each drop.

8

: 00:00:33

The amber liquid born of simple

ingredients like grain, water,

9

: 00:00:36

and time holds a special place

in the hearts of millions.

10

: 00:00:40

But this beloved spirit steeped in

tradition and enjoyed worldwide.

11

: 00:00:44

Is facing a modern challenge.

12

: 00:00:46

Tariffs.

13

: 00:00:47

These taxes designed to protect

domestic industries or gain leverage

14

: 00:00:51

in international disputes have cast a

long shadow on the global whiskey trade.

15

: 00:00:56

What was once a free flowing exchange of

culture and commerce has become entangled

16

: 00:01:01

in complex political and economic webs.

17

: 00:01:04

The story of whiskey and

tariffs is a compelling one.

18

: 00:01:07

It's a tale of interconnected economies,

shifting political landscapes, and the

19

: 00:01:11

very real impact these forces have.

20

: 00:01:14

On businesses, livelihoods,

and even the simple pleasure of

21

: 00:01:17

enjoying a DRAM with friends.

22

: 00:01:19

It's a story that deserves to be

told, understood, and discussed for.

23

: 00:01:23

It touches upon the very

essence of how we navigate an

24

: 00:01:26

increasingly interconnected world.

25

: 00:01:28

I.

26

: 00:01:36

Whiskey production is an art form

passed down through generations.

27

: 00:01:40

It's a craft that demands patience,

precision, and an intimate understanding

28

: 00:01:45

of the land and its bounty In Scotland,

distilleries dot the landscape.

29

: 00:01:51

They're stills reaching for

the sky, like ancient guardians

30

: 00:01:54

of a time honored tradition.

31

: 00:01:56

The air is thick with the aroma of malted

barley, peat smoke, and the promise of

32

: 00:02:01

a fine single malt across the Atlantic.

33

: 00:02:04

American whiskey tells a different

story, one of innovation and boldness

34

: 00:02:09

from the rolling hills of Kentucky

bourbon country to the bustling

35

: 00:02:12

cities of the East Coast, American

distillers have carved their own path.

36

: 00:02:17

Creating a unique and

vibrant whiskey culture.

37

: 00:02:20

The clinking of glasses in a

dimly lit speakeasy, the smooth

38

: 00:02:23

taste of bourbon on the tongue.

39

: 00:02:25

These are all part of the

American whiskey experience.

40

: 00:02:28

And then there's Japan, a relative

newcomer to the whiskey world, yet

41

: 00:02:31

one that has embraced the spirit with

unparalleled dedication and artistry.

42

: 00:02:36

Japanese whiskey is revered for

its meticulous attention to detail.

43

: 00:02:40

Its subtle nuances.

44

: 00:02:41

And its ability to blend tradition

with modern sensibilities.

45

: 00:02:45

A sip of Japanese whiskey is an experience

in zen-like balance and harmony.

46

: 00:02:50

Whiskey in its many forms and

origins is more than just a drink.

47

: 00:02:54

It's a cultural ambassador, a symbol of

national pride and a testament to the

48

: 00:02:58

human spirit of ingenuity and tradition.

49

: 00:03:01

It's a spirit that deserves to be

celebrated and shared unhindered.

50

: 00:03:05

By the complexities of

global trade disputes,

51

: 00:03:15

but the world of whiskey, like any

global industry, is not immune to the

52

: 00:03:19

realities of politics and economics.

53

: 00:03:22

The imposition of tariffs, those

seemingly innocuous taxes levied on

54

: 00:03:26

imported goods can have far reaching

and often devastating consequences

55

: 00:03:31

for producers and consumers alike.

56

: 00:03:33

What might seem like a dry economic policy

decision in a distant capital can ripple

57

: 00:03:39

across borders impacting the livelihoods

of farmers, distillers, bartenders, and.

58

: 00:03:44

Whiskey enthusiasts around the globe.

59

: 00:03:47

In 2018, a trade dispute between the

United States and the European Union

60

: 00:03:51

over steel and aluminum tariffs led

to retaliatory tariffs on American

61

: 00:03:56

whiskey entering the European Union.

62

: 00:03:59

This seemingly unrelated trade spat cast

a long shadow over the whiskey world,

63

: 00:04:03

creating uncertainty and hardship for an

industry built on centuries old traditions

64

: 00:04:08

and international collaboration.

65

: 00:04:10

Suddenly the smooth flow of whiskey

across the Atlantic was disrupted.

66

: 00:04:13

The 25% tariff added to the cost

of each bottle made American

67

: 00:04:17

whiskey less competitive.

68

: 00:04:19

In the European market, consumers

faced higher prices for their

69

: 00:04:22

favorite bourbons and rise.

70

: 00:04:24

While American distillers saw their hard

earned market share dwindle, the tariffs

71

: 00:04:28

were a stark reminder that the world

of whiskey for all its romanticism and

72

: 00:04:32

tradition operates within a complex web

of global trade agreements, political

73

: 00:04:37

maneuvering, and economic realities.

74

: 00:04:46

This documentary delves into the

heart of this complex issue exploring

75

: 00:04:51

the often overlooked human impact

of tariffs and trade disputes.

76

: 00:04:55

We'll hear from the passionate

individuals whose lives are intricately

77

: 00:04:59

intertwined with the world of whiskey.

78

: 00:05:02

From Master Distillers who have dedicated

their lives to perfecting their craft

79

: 00:05:07

to small business owners struggling

to keep their doors open in the face

80

: 00:05:12

of mounting economic pressure, we'll

journey to the heart of whiskey country

81

: 00:05:16

in Scotland, island, America, and beyond.

82

: 00:05:19

Witnessing firsthand the dedication,

artistry, and resilience of those

83

: 00:05:24

who make this beloved spirit.

84

: 00:05:26

We'll explore the rich history and

cultural significance of whiskey,

85

: 00:05:30

understanding why these tariffs

cut so deep, impacting not just

86

: 00:05:33

bottom lines, but also national

pride and the shared heritage.

87

: 00:05:37

Most importantly, we'll examine

the broader implications of this

88

: 00:05:40

trade dispute, asking critical

questions about the role of tariffs

89

: 00:05:43

in a globalized world and the.

90

: 00:05:45

Often unintended consequences of

political decisions on industries,

91

: 00:05:50

communities, and individuals.

92

: 00:05:52

This is more than just

a story about whiskey.

93

: 00:05:55

It's a story about interconnectedness,

about the delicate balance of global

94

: 00:05:59

trade and about the very human cost

of economic and political maneuvering.

95

: 00:06:11

Our journey into the world of whiskey

and tariffs begins with a basic

96

: 00:06:14

question, what exactly are tariffs?

97

: 00:06:17

In essence, they are taxes imposed

on goods as they cross borders.

98

: 00:06:21

Typically levied on imports

coming into a country.

99

: 00:06:24

Imagine if you will, a sort of virtual

toll booth at every port and airport

100

: 00:06:29

where a fee is collected on certain goods

before they can enter the domestic market.

101

: 00:06:34

These tariffs can take various forms, but

the most common is the valorem tariff.

102

: 00:06:39

Which is just a fancy Latin

term for a tax calculated as a

103

: 00:06:44

percentage of the goods value.

104

: 00:06:46

For instance, a 25%, a valorem tariff on

a bottle of whiskey worth $100 would add

105

: 00:06:51

an extra $25 to its price, making it, uh,

well less appealing to consumers compared

106

: 00:06:57

to domestically produced alternatives.

107

: 00:06:59

But tariffs don't always target specific

products like our beloved whiskey.

108

: 00:07:04

Sometimes they are applied more broadly

to entire categories of goods, such as.

109

: 00:07:09

Steel, aluminum or agricultural products

as we'll see in the US Eeu trade spat.

110

: 00:07:14

These broader tariffs are often used as

a blunt instrument in trade disputes.

111

: 00:07:19

Aimed at protecting domestic

industries or you know, exerting

112

: 00:07:22

pressure on trading partners.

113

: 00:07:24

Understanding the mechanics of tariffs

is crucial to grasping the their impact

114

: 00:07:28

on global trade because these seemingly

technical details have real world

115

: 00:07:33

consequences influencing prices, supply

chains, and ultimately the choices

116

: 00:07:38

consumers make at the checkout counter.

117

: 00:07:47

Now you might be wondering why use such

a seemingly obscure term like tariffs?

118

: 00:07:50

Why not simply call them taxes?

119

: 00:07:52

Well, in a way that's

precisely what they are.

120

: 00:07:55

Taxes on imported goods.

121

: 00:07:56

However, the term tariff

carries its own weight.

122

: 00:07:59

In international trade, often

used as a tool for protectionism.

123

: 00:08:03

Retaliation or even political maneuvering.

124

: 00:08:06

Governments often justify tariffs

as a means to protect domestic

125

: 00:08:09

industries from foreign competition.

126

: 00:08:11

By making imported goods more

expensive, tariffs can create an

127

: 00:08:15

artificial price advantage for domestic

producers, shielding them from the

128

: 00:08:19

full force of global competition.

129

: 00:08:21

However, this protection comes at a

cost often leading to higher prices

130

: 00:08:25

for consumers and potentially,

you know, hindering innovation

131

: 00:08:28

within the protected industry.

132

: 00:08:30

Moreover, tariffs can be used as.

133

: 00:08:31

A retaliatory measure in trade

disputes much like a game of

134

: 00:08:35

tit for tat on the global stage.

135

: 00:08:37

When one country imposes tariffs on

another, it's not uncommon for the

136

: 00:08:40

targeted country to respond in kind

escalating the dispute and potentially

137

: 00:08:45

harming both economies in the process.

138

: 00:08:48

So while tariffs share similarities

with taxes, their implications extend

139

: 00:08:52

far beyond mere revenue collection.

140

: 00:08:54

They are powerful tools that

can shape global trade flows,

141

: 00:08:57

influence domestic industries.

142

: 00:08:59

And even spark international tensions.

143

: 00:09:09

Throughout history, tariffs have played

a multifaceted role in international

144

: 00:09:13

trade serving as both instruments of

economic policy and weapons in trade wars.

145

: 00:09:19

In the 18th and 19th centuries, tariffs

were a primary source of government

146

: 00:09:23

revenue in many countries, used to

fund infrastructure projects, military

147

: 00:09:27

expenditures, and even social programs.

148

: 00:09:30

The American Revolution in part was

fueled by colonial resentment towards

149

: 00:09:34

British tariffs on tea and other goods.

150

: 00:09:38

During the Great Depression, protectionist

tariffs proliferated as nations

151

: 00:09:42

sought to shield their struggling

industries from foreign competition.

152

: 00:09:45

However, this strategy often backfired

leading to a downward spiral of

153

: 00:09:49

retaliatory tariffs and a contraction in

global trade, which actually exacerbated

154

: 00:09:54

the economic crisis in more recent times.

155

: 00:09:57

Tariffs have been deployed in trade

disputes ranging from steel and aluminum

156

: 00:10:02

to solar panels and washing machines.

157

: 00:10:05

The World Trade Organization or

WTO was established in: 1995

158

: 00:10:10

the aim of regulating international

trade and resolving disputes.

159

: 00:10:14

But its effectiveness has been

tested by escalating trade tensions

160

: 00:10:18

and the resurgence of protectionist

measures, the use and abuse of tariffs.

161

: 00:10:22

Highlight the delicate.

162

: 00:10:24

Balance between protecting domestic

interests and fostering a free

163

: 00:10:28

and open global trading system.

164

: 00:10:31

While tariffs can serve legitimate

economic and political purposes,

165

: 00:10:35

their deployment often carries

unintended consequences impacting

166

: 00:10:39

consumers, businesses, and well.

167

: 00:10:41

Global economic stability.

168

: 00:10:51

In 2018, the world watched as a long

simmering trade dispute between the

169

: 00:10:55

United States and the European Union

erupted into a full-blown trade war.

170

: 00:11:00

At the heart of the dispute were

tariffs on steel and aluminum

171

: 00:11:04

imposed by the Trump administration

on national security grounds.

172

: 00:11:08

The eu, however, viewed these tariffs

as protectionist measures and responded

173

: 00:11:13

with retaliatory tariffs on a range of

American goods, including to the dismay

174

: 00:11:18

of whiskey enthusiasts, American whiskey.

175

: 00:11:21

The US argued that its steel and

aluminum industries were vital to

176

: 00:11:25

national security and needed protection

from what it deemed unfair trade

177

: 00:11:29

practices by China and other countries.

178

: 00:11:32

The EU countered that its steel

and aluminum exports pose no threat

179

: 00:11:36

to US national security and that

the tariffs were unjustified.

180

: 00:11:39

This transatlantic trade spat, however

extended far beyond steel and aluminum.

181

: 00:11:45

It became emblematic of broad

attentions over trade imbalances,

182

: 00:11:49

differing economic philosophies,

and the future of the rules based.

183

: 00:11:53

Global trading system.

184

: 00:11:55

The tariffs became bargaining

chips in a high stakes game of

185

: 00:11:58

economic chess with both sides

seeking leverage and concessions.

186

: 00:12:02

The impact of this trade war reverberated

throughout the global economy, disrupting

187

: 00:12:08

supply chains, increasing costs for

businesses and consumers, and fueling

188

: 00:12:12

uncertainty in financial markets.

189

: 00:12:15

And within this complex web of tariffs

and counter tariffs, our beloved whiskey

190

: 00:12:18

found itself caught in the cross hair.

191

: 00:12:21

A casualty of a much larger

geopolitical struggle,

192

: 00:12:31

the eus decision to target

American whiskey with a 25% tariff.

193

: 00:12:35

Was no accident.

194

: 00:12:37

It was a strategic move aimed at

hitting back at the US in a sector

195

: 00:12:40

where it would feel the pain.

196

: 00:12:42

The US is the world's largest

whiskey exporter, and Europe

197

: 00:12:45

is its biggest market.

198

: 00:12:47

This targeted tariff sent shockwaves

through the American whiskey industry.

199

: 00:12:51

Distilleries, both large and

small, suddenly face the prospect

200

: 00:12:54

of losing a significant chunk

of their export business.

201

: 00:12:57

The tariff added on top of existing

taxes and shipping costs made American

202

: 00:13:02

whiskey less competitive in the European

market, squeezing profit margins and

203

: 00:13:07

forcing some producers to raise prices.

204

: 00:13:10

The impact wasn't

limited to the US either.

205

: 00:13:13

European importers, distributors,

and retailers who relied on American

206

: 00:13:17

whiskey also felt the pinch.

207

: 00:13:19

Consumers accustomed to a certain price

point for their favorite bourbons and rise

208

: 00:13:23

were faced with higher prices, potentially

driving them to explore alternatives.

209

: 00:13:29

The whiskey industry, once a

symbol of international cooperation

210

: 00:13:33

and shared enjoyment, became a

porn in a larger political game.

211

: 00:13:37

The tariffs highlighted the interconnected

nature of global trade, demonstrating

212

: 00:13:41

how seemingly unrelated disputes can

have ripple effects across industries,

213

: 00:13:46

borders, and even continents.

214

: 00:13:55

The tariffs landed like a gut punch

to the American whiskey industry,

215

: 00:13:58

particularly in states like Kentucky,

where bourbon is more than just a drink.

216

: 00:14:03

It's a way of life, a source of pride

and a cornerstone of the economy.

217

: 00:14:07

Generations of distillers have honed

their craft producing world renowned

218

: 00:14:11

bourbons that have become synonymous with

American craftsmanship and hospitality.

219

: 00:14:16

Now these same distilleries found

themselves grappling with the

220

: 00:14:19

harsh realities of a trade war.

221

: 00:14:21

They didn't start the tariffs added a

layer of complexity and uncertainty to

222

: 00:14:25

an industry already facing challenges.

223

: 00:14:28

The rising cost of corn, a key ingredient

in bourbon production, coupled with

224

: 00:14:32

fluctuating global demand, had already

put pressure on profit margins.

225

: 00:14:37

The tariffs, however, threatened to

upend, carefully crafted business plans.

226

: 00:14:41

Forcing distilleries to make

difficult decisions about pricing,

227

: 00:14:44

production, and even their workforce.

228

: 00:14:47

For many, in the heartland of American

whiskey production, the tariffs felt

229

: 00:14:50

like a betrayal, a punishment for a

dispute that had little to do with them.

230

: 00:14:55

The livelihoods of farmers, distillery

workers, truck drivers, and countless

231

: 00:14:59

others in the supply chain was

suddenly intertwined with the fate

232

: 00:15:02

of international trade negotiations.

233

: 00:15:05

The tariffs were a stark reminder

that even in a globalized world,

234

: 00:15:09

local communities and industries.

235

: 00:15:11

Remain vulnerable to the whims of

international politics and the unintended

236

: 00:15:15

consequences of trade disputes.

237

: 00:15:24

Kentucky, often referred to as the bourbon

capital of the world, bore the brunt of

238

: 00:15:29

the European Union's retaliatory tariffs.

239

: 00:15:32

The state is home to the majority

of American bourbon distilleries

240

: 00:15:36

and its economy, as you know,

deeply intertwined with the

241

: 00:15:39

production, distribution, and tourism

associated with this iconic spirit.

242

: 00:15:44

The tariffs therefore had a

disproportionate impact on Kentucky,

243

: 00:15:47

sending ripples of concern through

its communities and businesses, the

244

: 00:15:51

Kentucky Distillers Association, a

powerful lobbying group representing the

245

: 00:15:56

interests of the state's bourbon industry.

246

: 00:15:58

Immediately voiced its opposition

to the tariffs warning of potential

247

: 00:16:02

job losses, reduced investment and

damage to Kentucky's bourbon heritage.

248

: 00:16:07

The KDA argued that the tariffs were

unfair punishing an industry that had

249

: 00:16:11

nothing to do with the original steel

and aluminum dispute for Kentucky's

250

: 00:16:16

bourbon distillers, the tariffs

presented a daunting challenge.

251

: 00:16:20

European markets, particularly in

countries like the United Kingdom, France,

252

: 00:16:24

and Germany had become increasingly

important for American bourbon exports

253

: 00:16:29

representing a significant portion of

their revenue and growth potential.

254

: 00:16:33

The tariffs threatened to erode

this hard earned market share.

255

: 00:16:37

Forcing distillers to explore alternative

markets or absorb the added costs

256

: 00:16:41

potentially impacting their bottom line.

257

: 00:16:44

The tariffs also cast a shadow over

Kentucky's bourbon tourism industry.

258

: 00:16:48

The state attracts millions of visitors

each year who come to experience

259

: 00:16:52

the history, craftsmanship, and

camaraderie of Kentucky Bourbon country.

260

: 00:16:56

The tariffs, however, raise concerns

about potential price increases

261

: 00:17:00

for bourbon related experiences

potentially impacting tourism revenue.

262

: 00:17:04

And the livelihoods of those

employed in the hospitality sector.

263

: 00:17:15

While big bourbon brands struggled,

small family owned distilleries

264

: 00:17:18

were hit hardest by tariffs, lacking

the resources to weather the storm.

265

: 00:17:23

Many had to raise prices, cut

production, or halt expansion, putting

266

: 00:17:27

jobs and futures at risk as their

vital European market slipped away.

267

: 00:17:39

Tariffs didn't just hurt American bourbon.

268

: 00:17:42

Scotland's whiskey industry

also suffered with the US being

269

: 00:17:46

its largest export market.

270

: 00:17:48

The Scotch Whiskey Association

warned of job losses and economic

271

: 00:17:52

damage as demand dropped and.

272

: 00:17:54

Rural communities felt the strain.

273

: 00:18:04

The numbers were stark.

274

: 00:18:06

American whiskey exports to the EU

fell over 30% while scotch exports to

275

: 00:18:11

the US dropped 23% costing millions.

276

: 00:18:15

Even American oak barrel makers

felt the pain showing how tariffs

277

: 00:18:19

ripple through entire industries.

278

: 00:18:28

Behind every statistic were real

people, distillery workers, farmers and

279

: 00:18:32

families facing layoffs and uncertainty

in both Kentucky and Scotland.

280

: 00:18:37

Communities built on whiskey, saw

their way of life, threatened.

281

: 00:18:47

Distillers associations and

whiskey lovers fought back

282

: 00:18:51

lobbying, campaigning, and raising

awareness to push for a resolution.

283

: 00:18:55

Their united front showed the power

of advocacy in defending livelihoods.

284

: 00:19:07

Small craft distilleries.

285

: 00:19:08

Unlike industry giants faced

existential threats, unable to

286

: 00:19:12

absorb costs or shift markets easily.

287

: 00:19:14

The tariffs expose just how

vulnerable small businesses

288

: 00:19:17

are in global trade disputes.

289

: 00:19:26

Craft distillery is adapted, raising

prices, seeking new markets, and

290

: 00:19:31

leaning on community support to survive.

291

: 00:19:34

Their resilience sparked innovation

and deeper local connections.

292

: 00:19:45

Tariffs, forced distillers to innovate,

experimenting with new recipes, local

293

: 00:19:50

ingredients, and even collaborating

across borders, adversity fostered

294

: 00:19:54

creativity, and a global sense of

camaraderie among craft producers.

295

: 00:20:06

Communities rallied around their local

distilleries, organizing fundraisers

296

: 00:20:10

and promoting their products.

297

: 00:20:12

The crisis revealed how deeply

these businesses are woven into

298

: 00:20:15

the social and economic fabric.

299

: 00:20:25

Despite resilience, uncertainty, lingers

growth plans stalled, investments

300

: 00:20:28

paused, and the future remains unclear.

301

: 00:20:31

Yet the spirit of craft endures fueled by

hope, innovation, and community support.

302

: 00:20:35

I.

303

: 00:20:42

The story of craft distilleries caught

in the crossfire of the United States

304

: 00:20:47

European Union trade dispute is a

testament to the indomitable spirit

305

: 00:20:51

of entrepreneurship, the resilience

of communities, and the enduring

306

: 00:20:55

power of a well-crafted dram to bring

people together while the tariffs

307

: 00:20:59

presented unprecedented challenges.

308

: 00:21:02

They also revealed the remarkable

adaptability, creativity, and

309

: 00:21:05

determination of those who dedicate their

lives to producing exceptional spirits.

310

: 00:21:11

The tariffs underscored the

interconnectedness of the global economy

311

: 00:21:14

demonstrating how seemingly distant

political decisions can have pro.

312

: 00:21:18

Found and often unintended consequences on

industries, businesses, and livelihoods.

313

: 00:21:23

Far removed from the original point

of contention, they served as a stark

314

: 00:21:27

reminder that even in a globalized

world, local communities and small

315

: 00:21:32

businesses remain vulnerable to the

whims of international trade and.

316

: 00:21:36

The importance of advocating for policies

that support their growth and prosperity.

317

: 00:21:41

Yet amidst the uncertainty and economic

hardship, the craft distilling industry

318

: 00:21:47

demonstrated remarkable resilience,

drawing upon its deep connection to its

319

: 00:21:51

communities, its commitment to quality

and craftsmanship, and its unwavering

320

: 00:21:56

belief in the power of a shared passion

for whiskey to overcome adversity.

321

: 00:22:01

The tariffs, while undoubtedly a

challenge also served as a catalyst

322

: 00:22:05

for innovation, collaboration, and a

renewed appreciation for the importance

323

: 00:22:09

of supporting local businesses

in the communities they sustain.

324

: 00:22:13

The story of craft distilleries

in the crossfire of the tariffs

325

: 00:22:17

is a reminder that even in the

face of seemingly insurmountable

326

: 00:22:21

challenges, the human spirit of

ingenuity, community, and of course,

327

: 00:22:25

a good drum of whiskey can prevail.

328

: 00:22:34

After years of uncertainty and

economic hardship, a collective sigh

329

: 00:22:38

of relief swept through the global

whiskey industry in June,: 2021

330

: 00:22:44

the United States and the European

Union, after months of negotiations.

331

: 00:22:48

Agreed to a truss in their long-running

trade disputes, suspending the

332

: 00:22:52

tariffs on American whiskey and

other goods that had been imposed

333

: 00:22:55

during the Trump administration.

334

: 00:22:57

The news met with jubilation on both sides

of the Atlantic, signaled a thawing of

335

: 00:23:02

trade tensions, and offered a glimmer of

hope for the future of the whiskey trade.

336

: 00:23:07

The suspension of the tariffs initially

for a period of five years was hailed

337

: 00:23:12

as a victory for diplomacy and a

testament to the power of collective

338

: 00:23:16

action Industry groups distinct.

339

: 00:23:18

Killers and whiskey enthusiasts who

had tirelessly advocated for an end

340

: 00:23:22

to the tariffs, celebrated the news,

recognizing it as a crucial step towards

341

: 00:23:27

restoring normalcy to the global whiskey

market, and rebuilding the relationships

342

: 00:23:32

that had been strained by the trade

dispute, the suspension of the tariffs.

343

: 00:23:37

Had an immediate and positive

impact on the whiskey trade.

344

: 00:23:41

American whiskey producers who had seen

their exports to the European Union

345

: 00:23:45

plummet during the years of the tariffs

experienced a resurgence in demand

346

: 00:23:49

as European importers, distributors,

and consumers welcomed the return of

347

: 00:23:53

their favorite bourbons and rise at.

348

: 00:23:55

More competitive prices.

349

: 00:23:57

The suspension of the tariffs

was not just an economic victory.

350

: 00:24:00

It was a symbolic triumph for

the spirit of international

351

: 00:24:04

cooperation and the shared cultural

heritage embodied by whiskey.

352

: 00:24:08

It demonstrated that even in a world

often divided by political differences

353

: 00:24:12

and economic competition, the pursuit

of common ground and the celebration

354

: 00:24:16

of shared passions could bridge

divides and foster understanding.

355

: 00:24:27

While the suspension of the tariffs was

a cause for celebration, the road to

356

: 00:24:31

recovery for the whiskey industry was

not without its challenges, years of

357

: 00:24:35

uncertainty, lost revenue and disrupted

business plans had left their mark.

358

: 00:24:39

And rebuilding trust, restoring

supply chains, and regaining lost

359

: 00:24:43

market share would require time.

360

: 00:24:45

Effort and a continued

commitment to collaboration.

361

: 00:24:49

For many craft distilleries, the

suspension of the tariffs provided

362

: 00:24:52

a much needed lifeline, allowing

them to breathe a sigh of relief and

363

: 00:24:56

refocus on their long-term goals.

364

: 00:24:58

However, the financial strain of the

previous years had taken its toll

365

: 00:25:03

and many faced the daunting task of

rebuilding depleted cash reserves,

366

: 00:25:07

renegotiating contracts with suppliers.

367

: 00:25:10

And reassuring investors who had grown

wary of the volatile trade environment.

368

: 00:25:15

The suspension of the tariffs also

presented an opportunity for the whiskey

369

: 00:25:19

industry to reassess its priorities

and explore new avenues for growth.

370

: 00:25:24

The experience of the trade disputed

highlighted the importance of market

371

: 00:25:28

diversification, and many distilleries

look beyond their traditional export

372

: 00:25:32

markets, exploring opportunities in Asia,

south America, and other regions with

373

: 00:25:37

a growing thirst for premium spirit.

374

: 00:25:39

The suspension of the tariffs, while

a significant step in the right

375

: 00:25:43

direction was not a panacea for the

challenges facing the whiskey industry.

376

: 00:25:48

However, it provided a platform for

renewed dialogue, collaboration, and

377

: 00:25:52

innovation, setting the stage for

a more stable and prosperous future

378

: 00:25:56

for the global whiskey trade aid.

379

: 00:26:05

While the suspension of the tariffs

brought a welcome respite to

380

: 00:26:08

the whiskey industry, a sense of

cautious optimism, pervaded the

381

: 00:26:12

celebrations, the trade truce.

382

: 00:26:14

While a positive step remained

fragile, subject to the vagaries of

383

: 00:26:19

international politics and the ever

shifting dynamics of global trade, the

384

: 00:26:24

underlying trade tensions that had sparked

the tariff war remained unresolved.

385

: 00:26:29

The United States and the European

Union continued to grapple with issues

386

: 00:26:32

related to steel and aluminum tariffs,

aircraft subsidies, and digital taxes,

387

: 00:26:38

any one of which had the potential to

reignite trade tensions and threaten

388

: 00:26:42

the hard won truces on whiskey.

389

: 00:26:44

The suspension of the tariffs

was also time limited.

390

: 00:26:47

Set to expire in five years

unless renewed by both parties.

391

: 00:26:52

This looming deadline created a sense of

uncertainty for the whiskey industry as

392

: 00:26:56

businesses were hesitant to make long-term

investment decisions or fully commit to

393

: 00:27:00

rebuilding their export markets without

knowing whether the tariffs might return.

394

: 00:27:05

The fragile nature of the trade truce

served as a reminder that the whiskey

395

: 00:27:09

industry, despite its rich history,

cultural significance, and global appeal.

396

: 00:27:14

Remained vulnerable to the

forces of geopolitics and the

397

: 00:27:17

complexities of international trade.

398

: 00:27:26

Just as the whiskey industry began to

breathe a collective sigh of relief,

399

: 00:27:30

a new cloud appeared on the horizon.

400

: 00:27:32

Casting a shadow over the hard won

progress and reigniting fears of a renewed

401

: 00:27:37

trade war in a move that sent shockwaves

through the global whiskey industry.

402

: 00:27:42

The European Union announced its

intention to impose a 25% tariff on

403

: 00:27:48

American whiskey starting in June, 2023.

404

: 00:27:51

A direct consequence of a

long-running dispute over subsidies

405

: 00:27:55

to aircraft manufacturers.

406

: 00:27:57

The news of the impending tariffs

was met with dismay and honestly, a

407

: 00:28:01

fair bit of frustration by American

whiskey producers who had just begun

408

: 00:28:05

to recover from the previous round

of tariffs, and were now facing the

409

: 00:28:08

prospect of another costly trade barrier.

410

: 00:28:11

Industry groups caught off guard

by the announcement scrambled to

411

: 00:28:14

mobilize their resources, urging the

United States and the European Union

412

: 00:28:19

to find a negotiated solution and

avert another damaging trade war.

413

: 00:28:24

The European Union's decision to target

American whiskey once again highlighted

414

: 00:28:29

the vulnerability of the industry

to being used as in trade disputes,

415

: 00:28:34

often bearing the brunt of politic.

416

: 00:28:38

The tariffs threatened to derail

the industry's fragile recovery,

417

: 00:28:42

stifle innovation and dampen consumer

demand, potentially leading to

418

: 00:28:46

job losses and economic hardship.

419

: 00:28:49

The looming threat of new tariffs served

as a stark reminder that the global

420

: 00:28:53

trade environment remained volatile

and unpredictable, and that the whiskey

421

: 00:28:58

industry, despite its best efforts to

adapt and innovate, could not escape the

422

: 00:29:02

consequences of geopolitical tensions and

the complexities of international trade.

423

: 00:29:13

The story of whiskey and tariffs as

we've journeyed through its twists and

424

: 00:29:17

turns, reveals a complex interplay of

history, culture, politics, and economics.

425

: 00:29:23

It's a story of interconnectedness,

highlighting how a seemingly simple

426

: 00:29:28

act raising a glass of whiskey

is intricately linked to global

427

: 00:29:32

trade flows, political decisions.

428

: 00:29:34

Made in distant capitals and the

livelihoods of individuals and communities

429

: 00:29:38

across continents, the imposition and

subsequent suspension of tariffs have

430

: 00:29:43

tested the resilience of the whiskey

industry, particularly the smaller

431

: 00:29:46

craft distilleries that form the

heart and soul of this spirited craft.

432

: 00:29:51

Yet amidst the challenges we've

witnessed, remarkable adaptability.

433

: 00:29:55

Unwavering dedication and a

strong sense of community.

434

: 00:29:58

Distillers faced with adversity,

have innovated, collaborated,

435

: 00:30:02

and found new ways to share their

passion for whiskey with the world.

436

: 00:30:06

As we look to the future, the path

forward for the whiskey industry remains

437

: 00:30:10

intertwined with the complexities of

global trade and the unpredictable

438

: 00:30:14

nature of international relations.

439

: 00:30:17

The threat of new tariffs looms a

stark reminder that the industry's

440

: 00:30:21

fate is not entirely in its own hands,

yet amidst the uncertainty, there's a

441

: 00:30:26

spirit of hope, a belief in the enduring

power of craft community, and a shared

442

: 00:30:31

passion for this timeless spirit.

443

: 00:30:34

The whiskey world with its rich history

and global reach will continue to adapt.

444

: 00:30:40

Innovate and navigate the complexities

of the 21st century, ensuring

445

: 00:30:45

that the tradition of raising a

glass and the stories shared over

446

: 00:30:49

its Amber Glow will continue to

be told for generations to come.

447

: 00:31:01

As our glasses are raised in

celebration or contemplation, it's

448

: 00:31:04

easy to forget the journey that

brought that whiskey to our lips.

449

: 00:31:08

We savor the complex flavors,

the warmth of the spirit,

450

: 00:31:11

the camaraderie it inspires.

451

: 00:31:13

But the story of whiskey, as

we've discovered, extends far

452

: 00:31:17

beyond the distillery walls and

the familiar clinking of glasses.

453

: 00:31:21

It's a story woven into the very fabric

of global trade, a testament to the

454

: 00:31:26

interconnectedness of our modern world.

455

: 00:31:29

From the Bley fields of rural

America to the bustling streets of

456

: 00:31:32

London, from the rolling hills of

Scotland to the sophisticated bars

457

: 00:31:36

of Tokyo whiskey transcends borders,

cultures, and even time itself.

458

: 00:31:41

It's a shared language of flavor

and tradition, a testament to

459

: 00:31:44

the human desire to connect.

460

: 00:31:46

To celebrate and to find

solace in a shared experience.

461

: 00:31:50

The tariffs, those seemingly

technical instruments of trade

462

: 00:31:52

policy have served as a stark

reminder of this interconnectedness.

463

: 00:31:57

They've shown us that a decision

made in a boardroom or a government

464

: 00:32:00

office thousands of miles away can

ripple across continents, impacting

465

: 00:32:04

not just bottom lines, but also

livelihoods, communities, and even the

466

: 00:32:09

simple pleasure of enjoying a dram.

467

: 00:32:11

Friends, the whiskey industry with its

rich history and global reach stands as

468

: 00:32:16

a microcosm of the interconnectedness of

our modern world, a potent symbol of how

469

: 00:32:21

our lives, our economies, and even our

shared passions are inextricably linked.

470

: 00:32:33

The story of whiskey and tariffs

has also offered a glimpse into the

471

: 00:32:37

often unseen hand of global trade.

472

: 00:32:40

The complex web of agreements,

regulations, and political

473

: 00:32:43

maneuvering that shape the flow of

goods and services across borders.

474

: 00:32:46

It's a system that at its best, fosters

cooperation, innovation, and economic

475

: 00:32:51

growth, connecting producers and consumers

in a mutually beneficial exchange.

476

: 00:32:57

But as we've witnessed, this system

is not without its flaws, its

477

: 00:33:01

vulnerabilities, and its potential

for unintended consequences.

478

: 00:33:05

The tariffs imposed in the name of

protecting domestic industries or gaining

479

: 00:33:09

leverage in international disputes

have exposed the fragility of this

480

: 00:33:14

system, demonstrating how easily the

flow of trade can be disrupted with far

481

: 00:33:18

reaching implications for businesses.

482

: 00:33:20

Communities and individuals, they've

shown us that even in a globalized

483

: 00:33:25

world where goods and services move

freely across borders, the specter

484

: 00:33:29

of protectionism and the allure of

economic nationalism can resurface

485

: 00:33:34

threatening to unravel the delicate

fabric of international cooperation.

486

: 00:33:38

The whiskey industry caught in the

crossfire of these trade tensions

487

: 00:33:42

has become an unlikely advocate

for the importance of a rules-based

488

: 00:33:45

predictable trading system.

489

: 00:33:47

Distillers industry associations.

490

: 00:33:50

And whiskey enthusiasts alike have

found common ground in their calls

491

: 00:33:54

for dialogue, cooperation, and a

recognition that in an interconnected

492

: 00:33:58

world, our fates are intertwined, and

that the pursuit of narrow self-interest

493

: 00:34:04

can often lead to collective harm.

494

: 00:34:06

The whiskey industry's experience

serves as a cautionary tale.

495

: 00:34:10

A reminder that the benefits of

global trade are not guaranteed.

496

: 00:34:14

That the pursuit of open markets and

fair competition requires constant

497

: 00:34:17

vigilance, and that the choices we

make as consumers, as citizens, and

498

: 00:34:22

as members of a global community, I.

499

: 00:34:24

Have the power to shape the

future of trade and the wellbeing

500

: 00:34:27

of our interconnected world

501

: 00:34:36

beyond the immediate impact

on the whiskey industry.

502

: 00:34:39

The story of tariffs has offered

us a unique lens through which

503

: 00:34:43

to examine broader themes of

history, politics, and economics.

504

: 00:34:46

It's a story that

stretches back centuries.

505

: 00:34:49

To the earliest days of international

trade when tariffs were used, not just

506

: 00:34:54

as a source of government revenue,

but also as tools to protect domestic

507

: 00:34:57

industries, project national power,

and even shape the course of empires.

508

: 00:35:02

The tariffs imposed on whiskey in recent

years are but the latest chapter in

509

: 00:35:07

this long and often contentious history.

510

: 00:35:09

They reflect the enduring tension

between the forces of globalization

511

: 00:35:14

and the pull of nationalism, the

desire for open markets and the

512

: 00:35:17

impulse to protect domestic interests,

the allure of cooperation, and the

513

: 00:35:21

temptation of economic rivalry.

514

: 00:35:24

The whiskey industry with its deep roots

in history and its global reach stands

515

: 00:35:29

at the intersection of these forces.

516

: 00:35:31

It's a reminder that even in our

modern, interconnected world, the

517

: 00:35:35

echoes of the past continue to resonate.

518

: 00:35:38

That the choices we make today are shaped

by the decisions of those who came before

519

: 00:35:42

us, and that the pursuit of a more just

and equitable global trading system is an

520

: 00:35:48

ongoing process fraught with challenges,

but also brimming with possibilities.

521

: 00:35:53

The story of whiskey and tariffs invites

us to sip on this rich tapestry of

522

: 00:35:57

history, politics, and economics, to

appreciate the complexities of the global

523

: 00:36:01

trade system, and to recognize that the

choices we make as consumers, as citizens.

524

: 00:36:08

And as members of a global community have

the power to shape not just the future

525

: 00:36:12

of the whiskey industry, but also the

course of international relations and the

526

: 00:36:17

wellbeing of our interconnected world.

527

: 00:36:19

I.

528

: 00:36:27

As we raise a final toast to the

future of whiskey, we do so with

529

: 00:36:30

a sense of cautious optimism.

530

: 00:36:32

The industry, despite the challenges it

has faced, has emerged from the shadow of

531

: 00:36:36

tariffs with a renewed sense of purpose.

532

: 00:36:39

A deeper appreciation for the

importance of collaboration and an

533

: 00:36:42

unwavering belief in the enduring

appeal of this timeless spirit.

534

: 00:36:46

The tariffs, while disruptive and

costly, have served as a catalyst

535

: 00:36:50

for innovation and adaptation.

536

: 00:36:52

Distillers forced to confront uncertainty

and explore new avenues for growth

537

: 00:36:56

have emerged stronger, more resilient,

and more deeply connected to their

538

: 00:37:00

communities and to their craft.

539

: 00:37:02

The future of whiskey, much

like the spirit itself, is

540

: 00:37:05

best enjoyed one sip at a time.

541

: 00:37:07

Savoring the complexities, appreciating

the nuances, and embracing the unknown.

542

: 00:37:13

While challenges will undoubtedly arise

as they always have throughout whiskey's

543

: 00:37:17

long and storied history, the industry's

ability to adapt, to innovate, and to

544

: 00:37:23

bring people together over a shared

passion for this timeless spirit suggests

545

: 00:37:27

that the future of whiskey remains bright.

546

: 00:37:29

Indeed.

547

: 00:37:30

So let us raise a glass to the future

of whiskey, a future where tradition

548

: 00:37:34

and innovation go hand in hand.

549

: 00:37:36

Where collaboration and sustainability

guide the industry's path and where

550

: 00:37:41

the simple act of sharing a DRAM

continues to connect people across

551

: 00:37:45

cultures, borders, and generations.