Jack Daniel's Parent Company Has 'Concerns' Over Mexico Tariff Impacts

Posted: 10:38 PM, Jun 06, 2018
Updated: 2018-06-06 23:38:29-04

Could whiskey woes lie ahead for Jack Daniel's and other distillers?  That's the worry after Mexico announced tariffs on Tennessee whiskey in retaliation for President Trump's tariffs on steel and aluminum.

Brown-Forman -- the company that owns Jack Daniel's -- said Wednesday in response they have "concerns over potential retaliatory tariffs on American spirits."

In a conference call to investors Wednesday, Brown-Forman said it's hard to predict the impact the tariff will have on the company's profitability.

"It's a tough, tricky situation we've been watching now for months," said Brown-Forman CEO Paul Varga during the conference call.  "It seems every day we wake up, and it takes a bit of a twist and turn, including even last night."

The Mexican tariff comes after President Trump announced tariffs on imported steel and aluminum, something President Trump's administration has said was done in the name of national security.

Over the last several days, Sen. Bob Corker (R-Tennessee) has been critical of Trump's proposed tariffs.  He tweeted Monday: "Making claims regarding national security to justify what is inherently an economic question not only harms the very people we all want to help and impairs relations with our allies but also could invite our competitors to retaliate."

Sen. Corker has sponsored legislation that would require Congressional approval for tariffs changed in the name of national security.