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How Trading Tariffs Could Affect UK Pubs

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Trade wars or tariff barriers are very rarely good for any business making them unlikely to help the hospitality industry. The British Beer & Pub Association (BBPA) and UKHospitality (UKH) have responded to American talk of international trade costs.

On the 31st of May, Donald Trump, the US President announced steel and aluminium tariffs on goods from the EU, Canada and Mexico, prompting retaliatory language with the possibility of the EU taking similar measures.

EU Tariffs Expected, reported that the US commerce secretary confirmed EU organisations would now incur a 10% duty on aluminium, with a 25% tariff on steel. Jean-Claude Junker, President of the European Commission responded by saying the European Union would hit back with similar tariffs on US goods.

Prior to this in March, the EU issued a 10-page directory of goods made in the United States that were potential objects for retaliatory duty.

American alcohol products such as Jack Daniels and Jim Beam were included, in addition to a range of non-alcoholic beverages.

Potential Consequences

UK hospitality industry representatives, The British Beer & Pub Association (BBPA) and UK Hospitality (UKH) has offered its thoughts on the potential consequences of a trade war.

Kate Nicholls, UKH chief executive said: “Additional tariffs on imported products and the associated cost increases are not likely to help hospitality businesses.

UKHospitality has strongly opposed any tariffs on food and drink as part of our Brexit representations and we equally oppose tariffs with other countries, and hope to see further liberalisation of trade rather than protectionist action.

If pubs, bars and nightclubs are to continue thriving and growing, then ideally we need to see tariff-free trade that avoids an increase in costs.”

Brigid Simmonds, BBPA chief executive added: "We are concerned with trade tariffs on goods such as aluminium, which is widely used in the beer industry, particularly in beer cans. “Trade wars and protectionism are rarely good for businesses in any country affected.”

If you're worried about potential increases of wholesale beer prices, then check out our wholesale options as a possibility for stock.