A Donald Trump proposed
US Border Tax would hit US whisky drinkers.
Alexandre Ricard, Pernod Ricard CEO, has warned that
a proposed 20% US tax on imported goods which could
hit Scotch whisky would have to be passed on to
Ricard commented earlier this week saying,
"Retailers are saying, and we're fully in line with
them, that the border adjustment tax is a consumer
tax, a consumption tax." He went on to say that the
proposal by Republican lawmakers to impose a 20% tax
on imports was unfair to the American consumer.
The U.S. arm of the maker of Absolut vodka, Martell
cognac and Mumm champagne has joined "Americans for
Affordable Products", a group of over 100 businesses
opposed to the tax.
The lobby group, launched earlier this month,
includes other distillers Diageo North America and
LVMH, as well as retailers including Walmart, Nike
and Walgreens Boots Alliance, according to its
Pernod's business relies largely on provenance-based
drinks whose production can not be moved, such as
cognac and champagne, which must both be made in
But for some products, like blended Scotch, there is
flexibility. For example, Ricard said it was
possible to blend Scotch in Scotland and ship it to
the United States in bulk in inert containers to be
He said such a move could be more efficient
regardless of any border tax, since shipping whisky
in bulk is lighter than shipping it in bottles.
"Maybe, it's something one could consider despite
all of that, I would say it's something we should do
anyway for environmental reasons."