China, Mexico, Canada, and the European Union have collectively agreed to impose tariffs on America's beloved bourbon.
Is this in response to the recent steel and aluminum tariffs President Donald Trump recently implemented?
Trump has made it clear that his administration’s trade policies will reflect his “America First” campaign.
Trump has threatened to end or at least renegotiate multiple trade agreements, including the North American Free Trade Agreement with Canada and Mexico and the U.S.-South Korea free-trade agreement.
The steel and aluminum order introduced a 25% tariff on steel products and 10% on aluminum goods. Trump said, like he has in the past, that Canada and Mexico could remain exempt if a “new and fair” North American Free Trade Agreement (Nafta) is signed.
The China, Mexico, Canada, and the European Union are making their next move in the trade negotiations by slapping tariffs on bourbon.
"Bourbon is truly Americana," said Bill Thomas, whiskey collector and owner of Washington D.C.'s Jack Rose Saloon to "CNBC." "When you talk about tariffs on steel or aluminum or anything else, bourbon just can't be produced anywhere else than the United States. So in many ways, this is a symbolic target on American culture because bourbon is so intertwined with who we are."
Kentucky produces 95 percent of the world's supply of bourbon and the booming industry generates $85 billion a year.
China imports $12.8 million in U.S. spirits a year, $9 million of that is whiskey. The EU imports $789 million of U.S. spirits a year, 85 percent of which is Bourbon, Tennesse whiskey, and rye whiskey.
But the revenue in the industry is bound to take a hit due to these new tariffs. Read more at "CNBC."