Here’s some good news for the avid drinkers in your life: Some kinds of whiskey are about to get a lot cheaper.
On Thursday, the US government agreed to remove the steep tariffs it had placed on Scottish whiskey, Fox Business reports. The levies had raised the cost of this whiskey, Scotland’s main export, by roughly 25 percent. They emerged from a broader trade dispute between the US and the European Union, and were waived this week alongside other tariffs on olives and cheese.
US suspends costly tariffs on Scotch whiskyhttps://t.co/UeOLXPpZvY— FOX Business (@FoxBusiness) June 17, 2021
This is good news for Scotland’s whiskey industry and international relations, to be sure. Yet, more importantly, it’s good news for American consumers.
Tariffs may be meant to “punish” other countries and “protect” US businesses, but the brunt of their costs is ultimately borne by everyday Americans at the checkout line. Companies that face higher costs respond by raising prices. Indeed, research from Moody’s Analytics found that 92 percent of the costs of former President Trump’s tariffs on China were borne by US consumers, with just 8 percent actually falling on the targeted country.
Economists almost unanimously agree that tariffs don’t work and only hurt consumers. So, here’s hoping the government follows this move up with more trade liberalization across more industries. If it does, you’ll see even more benefit than a cheaper glass of whiskey.
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