As the CEO of GORDON PWC, a company specializing in premium spirit investments, it’s important to understand how global political shifts, like the recent trade tariffs announced by President Donald Trump, can significantly affect the industries in which we are invested.
One of the most notable changes this time is the imposition of a 10% tariff on Scotch whisky from the UK. This is a continuation of a trade dispute that began during Trump’s first term and is part of a broader effort to address perceived trade imbalances. While this move is understandably concerning for the Scotch industry, it’s important to remember that Scotch is a global product with a loyal consumer base. However, the tariff will likely lead to increased prices for American consumers, potentially dampening demand in the short term. For investors, this could translate into greater volatility within the Scotch market, but also an opportunity to identify brands that can navigate this pressure effectively.
On the other hand, the news from Mexico is more positive for tequila. Unlike Scotch, tequila has not been subject to the same tariff treatments, allowing it to continue expanding in its key export market—the United States. This is particularly important as the tequila market has been experiencing rapid growth over the past several years, driven by shifting consumer preferences towards premium spirits. With no tariff restrictions in place, the growth potential for high-end tequila remains robust, and this will undoubtedly benefit investors focused on the tequila category.
In summary, while the new tariffs present challenges for Scotch whisky, the exemption for tequila offers significant opportunities. As we continue to monitor these developments, we remain committed to guiding our clients through the complexities of the premium spirits market, ensuring we position investments that can thrive despite changing geopolitical landscapes.
At GORDON PWC, our focus remains on identifying and capitalizing on the emerging trends that define the future of premium spirits.
Meet the Author
Samuel, CO-FOUNDER & CEO
As CEO and co-founder, Samuel carries forward a family legacy of passion for spirits. His journey began with Scotch whisky investments, expanding to encompass Irish and Japanese markets. Now, he brings his expertise to the US, pioneering tequila investment opportunities. Visit our blog for more insights from Samuel.