Brace Yourself for Cheap Liquor from US

Expecting to see lot of deals on US manufactured liquors in the coming months due to tariffs and general boycott. Fingers crossed :)

Comments

  • +6

    US Liquor, eww
    I prefer my Scottish friends.

  • +8

    that's not how it works, like at all.

    • +1

      If they have a surplus of booze because orders to Canada, Mexico, and China are cancelled then won't they want to offload the booze somewhere else? https://www.independent.co.uk/news/world/americas/us-politic…

      • +2

        But won't that then push U.S. consumers to consume their local products instead of the imported ones? I think that is the purpose of tariffs.

        I would expect our market to start getting cheap Canadian and Mexican booze as their U.S. exports start to drop.

        • Who wants to drink American tequila though. The U.S. imports over seven billion dollars of tequila from Mexico alone. That's not even including other trendy spirits like mezcal.

    • I mean unless we continue buying for high prices it won’t

      • +9

        go and look up how much of the price of booze in Australia is because of the taxes we impose.

        you won't be seeing 50% off american booze.

        • It is to protect us from ourselves, not local manufacturers from overseas innovation

          • -1

            @Gdsamp: huh? tax is imposed on imported alcohol based on %, you realise that right? it's also got nothing to do with protecting us from ourselves or anything like that.

            • -1

              @coffeeinmyveins: The tax system is designed to discourage high-alcohol products, as stronger alcohol typically leads to more social and health-related harms. Taxing alcohol based on its strength allows for higher revenue collection from stronger alcoholic beverages, which are associated with higher consumption risks.

              • +1

                @Gdsamp: You're missing the point, most of what we pay for a bottle of booze is the tax, no matter where it's made.

                A bottle of wild turkey is $66 retail. Of that $6 is GST, $42 is excise, so there's only an $18 margin there to cover making it, bottling it, shipping it to Australia and retailer margin. When it's on sale for $55 or so, we're talking just a few dollars of revenue outside of tax.

                Not to mention US manufacturers are about to see energy and fuel costs skyrocket, which means their wholesale cost will go up further. Most likely we're going to see less US booze on our shelves and a price increase as a result.

                • -1

                  @freefall101: You're missing the point, most of what we pay for a bottle of booze is the tax, no matter where it's made.

                  Alcohol excise in Australia is designed to "protect us from ourselves"—or at least to discourage excessive alcohol consumption and its associated harms. This aligns with the idea of "sin taxes", where governments impose higher taxes on products that can lead to public health issues, such as alcohol, tobacco, and gambling.

                  • -1

                    @Gdsamp: I feel like Siri has been thrown into some kind of loop.

              • @Gdsamp: Fortified wine is one way to dodge the tax.

  • Tarrifs are another way of saying tax. Tarrifs in most cases, if the demand/need is still there, will 90% of the time be passed onto consumers. This won't normally influence export decisions. Unless the tarrifs outweigh the cost of doing business in their current market, can't see it being sold to Australia, especially with the added excise tax we have here, shipping and weaker $AUD.

    Most of the imposes Tarrifs Trump has declared will just add to their federal budget, and aimed to help protect their local market or increase job production - at a consumer loss.

  • +3

    When America put tariffs on Chinese cars we got them cheap. So surely when America puts tariffs on Canadian and Mexican liquor it'll be them we get cheap, not American liquor?

  • I gave up alcohol years ago because it causes cancer and has several other undesirable side effects.

  • OP just missed an opportunity … AU Alcohol exise tax just went up in last few days (as it does twice a year).

    Many many pubs/bottle-shops stocked up (some buying 100's of pallets - each 52-60 CTNS per pallet).

    Buy low before the increase … But then onsell to end consumer at the higher price == a tidy profit, without really much effort.

  • I was misled by the title.
    I was hoping it was because the excise tax auto increased, the crims got in a supply from the USA to sell with their under the counter smokes.

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