Tariffs and rum

[u/Soggy_Aardvark_3983]

https://www.stabroeknews.com/2025/04/03/news/guyana/trump-slaps-38-tariff-on-guyana-goods/

34% tariff on Guyana. WHAT WILL HAPPEN TO EL DORADO NOOO

[u/Yep_why_not]

38% actually for Guyana

• Fiji - 32%
• Thailand - 36%
• South Africa - 30%
• Mauritius - 40%
• EU - 20% obviously is the biggest one given all the IBs

That's just the direct tariffs also. Production cost will be higher in some respect as well.

[u/Samp90 → u/Yep_why_not]

I'm in Canada, no worries here. And no bourbon either.

[u/Yep_why_not → u/Samp90]

It will still raise prices for you just less directly.

[u/kwake0093 → u/Yep_why_not]

I’m not an expert in Econ but my understanding is the drop in US sales will create a surplus for other countries actually, effectively lowering their prices.

[u/Yep_why_not → u/kwake0093]

70% of rum consumed in the US is from Puerto Rico which is not subject to tariffs. Guess I should point that out also.

[u/mop_bucket_bingo → u/Yep_why_not]

So 70% of the consumed in the US is from the US.

[u/Yep_why_not → u/mop_bucket_bingo]

More like 80-90% counting Cruzan and Captain. The US territories produce the majority of rum for the world.

[u/kwake0093 → u/Yep_why_not]

Thanks for the info. I just took what I’ve heard about other industries and applied it to rum, but obviously there are way more factors at play.

[u/Yep_why_not → u/kwake0093]

We don’t buy enough rum for that scenario I would imagine. The increase in cost to produce will likely more than offset the drop in US demand assuming there is a drop. Alcohol is usually recession proof since we tend to drink more in hard times.

[u/KapotAgain → u/Yep_why_not]

Definitely will lower prices in other countries.  Supply and demand.  Less demand in US more supply elsewhere.  Simple

[u/Yep_why_not → u/KapotAgain]

Not simple. Reverberations in the supply market driving up production cost and shipping will offset any loss in demand. The US rum market isn’t bigger than international shipping market. Think Covid pandemic.

[u/KapotAgain → u/Yep_why_not]

The rum was probably produced more then 3 years ago.  It's just in a cask now.  Guess they'll use ex sherry casks as opposed to bourbon casks to age their stock now 😉

[u/Yep_why_not → u/KapotAgain]

They need bottles and to ship it across the sea. Shipping is a massive cost that will likely go up. They need fertilizer, parts, fuel. All these things will cost more. All of this cost will increase prices more than one country that doesn’t drink much rum decreasing demand and the majority of the rum they drink anyway comes from a country without tariffs. Puerto Rico.

[u/KapotAgain → u/Yep_why_not]

Yeah I forgot the fertilizer, to fertilize that barrelled rum, my bad.

[u/Patrick_Hobbes → u/Yep_why_not]

AHHHHHHHHHHH!!! NOT MY RUM!!! IMPEACHMENT NOW!!!

[u/_brewchef_]

Time to start drinking Puerto Rican Rum unless this dumbass also added them to the tariff list

[u/memphis_rum_club → u/_brewchef_]

Someone needs to get the President of Puerto Rico on the phone so we can pre-empt any tariffs hitting them.

[u/Piratarojo → u/memphis_rum_club]

USA punches itself in the face, it was very effective

[u/FatsP → u/Piratarojo]

USA is confused!

It hurt itself in its confusion!

[u/me_meh_me → u/_brewchef_]

It will also get more expensive as everyone uses inputs manufactured elsewhere and under tariffs.

[u/_brewchef_ → u/me_meh_me]

Oh yeah I am not looking forward to paying more for domestics due to production cost increases let alone the production cost increases + tariff increases on international

Gonna suck ass that the better rums are going to be wildly more expensive

[u/VIJoe → u/_brewchef_]

We still have Cruzan and Capt. Morgans cranking out here in the USVI.

[u/Signal-Fish8538 → u/VIJoe]

Last time Trump was president he said the Virgin Islands had a president we might get tariffs 😂

[u/futurebigconcept → u/_brewchef_]

Puerto Rico is effectively the US.

[u/mop_bucket_bingo → u/_brewchef_]

You can’t put tariffs on your own country.

[u/_brewchef_ → u/mop_bucket_bingo]

They put tariffs on uninhabited islands, I don’t trust they’re competent enough to not tariff an overseas territory

[u/GeorgeCabana → u/_brewchef_]

He would definitely tariff PR if he could figure out how to.

[u/Soggy_Aardvark_3983 → u/mop_bucket_bingo]

I’m sure he’s figuring out a way to put tariffs on California…

[u/ssibal24]

It will be more expensive of course.

[u/samujpark]

The fact that ChatGPT probably cooked up this tariff regime really sets it off for me

[u/pr1ceisright → u/samujpark]

It’s worse. Dude just took two randoms numbers and said “yeah, this will be the perfect tariff”. There’s a post in r/economy where they figured it all out.

[u/Badger_6]

The U.S. already has an annoying policy on rum. If you don’t know about the U.S rum cover-over, I suggest this article by u/cocktailwonk

[u/OddVermicelli9162]

I’m prepared to do my bit from the UK to pick up the slack on any excess supply of rum from Guyana, or for the matter Fiji, or…… well just about anywhere that makes fantastic rum. There are also some fantastic newer UK rum distillers such as J.Gow and Ninefold which we in the UK will also have to support if there is a glut of great rum heading our way. ……..Now if someone would just support my bank balance and explain to my wife why it is very important that I buy so much rum then all would be good.

[u/tenmidgets57]

Thank God it hasn't affected Barbados!

[u/Yep_why_not → u/tenmidgets57]

Just the flat 10% for there, Jamaica, Saint Lucia, and Martinique which are some of the classics at least.

[u/samujpark]

Thanks for the reminder 🫡 went to the store and picked up a Lemon Hart 151 & ED12

[u/Kroadus]

But Reunion...

[u/MC_McStutter]

Well, I guess if there’s a silver lining, this will prevent other people from wanting to get into rum and hurt availability… right..?

[u/bay_duck_88 → u/MC_McStutter]

That was never a concern. Rum production is much more sustainable than bourbon or Japanese whisky