Distilleries in Sevier County are closely watching Mexico's tariffs on Tennessee whiskey.
The Mexican tariffs on whiskey and other U.S. products are a direct response to President Donald Trump's tariffs on imported steel and aluminum.
Ole Smoky Moonshine is a relative newcomer in the distillery world. However, since it opened in 2010, the business has been shining and expanding to multiple locations. The distillery boasts it is the most-visited distillery in the world, due in large part to its free tastings and locations directly beside the most-visited national park in the country.
The company's sales are overwhelmingly in the United States, but Ole Smoky does make runs of white lightning to locations throughout the world.
"It is a growing part of our business and we are keeping a close eye on the situation with tariffs," said Robert Hall, Ole Smoky Moonshine CEO. "Right now, our largest international market is in Canada, then Europe, and then Mexico."
Canada and European Union (EU) have stated an intention to impose its own tariffs later this summer in retaliation to Trump's imposed tariffs on steel and aluminum.
Hall said he's hopeful the 25 percent tariff in Mexico will not have an overly-negative impact on sales.
"We have such a differentiated product, even with the tariff, we are optimistic our international customers will continue to buy," said Hall.
The company that owns Jack Daniel's, Brown-Forman, said Wednesday it is also concerned about "retaliatory tariffs on American spirits."
Senator Bob Corker (R-Tennessee) has issued several spirited comments regarding the U.S. tariffs. He specifically disagrees with Trump's justification for the tariffs as an issue of "national security."
Corker tweeted Wednesday afternoon: "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."
Corker has introduced a bill that would require Congress to approve any tariffs made in the name of national security.
While the tariffs and retaliations continue, distilleries in Tennessee hope it doesn't lead to long-term worries that dry up international whiskey profits.
