Trump tariffs are not ideal but not catastrophic believes Mayo whiskey director

A DIRECTOR of a Mayo whiskey distillery hopes measures taken in advance of the introduction of US tariffs will allow them to take the hit on the worst impacts of the new 20 percent tariff.

US President Donald Trump announced a 20 percent tariff on European Union imports to the US which included Irish whiskey, spirits and liqueurs imports in the US. The Irish Whiskey Association stated that the US tariffs could bring 'devastating impacts' to the spirits sector.

However, Michael McKay, a director of Irish American Whiskey, which distills its own whiskey on Achill Island, explained that the company doubled their shipment to the US in January and hopes these measures will offset the effects of the tariffs.

“They [rumours of tariffs] have been rumbling for a while since Trump took power so we got out ahead of it at the start of the year and shipped over two or three containers of whiskey in January and February.

READ: ‘Very worrying’ Trump tariffs raise Mayo job fears

“We shipped double what we normally ship and that should cover us for the next year or two,

“They arrived before the tariffs so they won't affect us for the foreseeable future,” Michael told The Mayo News.

The Achill Island Distillery produces up to 15,000 bottles of whiskey per week with 50 percent of its Irish American premium brand products exported to the US. However, due to the fact they distill their own whiskey, Michael believes they will be able to take the hit on the tariffs which are brought in.

“The products that it would greatly affect we have already shipped and any future products we will be bringing out because we produce ourselves we can kind of afford to take the hit.

“If it was 200 percent [tariff] like they were talking about it, that would be a bigger concern. For now everyone is in the same boat and our competitors are feeling the same pinch. So hopefully it won't affect us too much. It is not ideal but it is not catastrophic," he explained but added that they also import raw materials from the US so he will be keeping an eye on any postential EU tariffs on US goods.

Michael explained that over the last number of years they have been diversifying into new markets and are now exporting to Europe and Asia and are also selling in the International Duty Free Market.

“Obviously the States is the big market but we don't have all our eggs in one basket and we have diversified our export market over the last three or four years with Irish American and the Achill whiskey brand we have as well. It is not like America is the only show in town,” he said.

The distillery on Achill Island now employs ten people and Michael added that apart from the new tariffs the company has been growing with sales growing every year.

“We have been in Knock Airport for the last year and those sales are really flying. The better Knock does the better we seem to do as well. It is a slow process but we are gaining momentum every year.”

Meanwhile, Mayo TD and Sinn Féin spokesperson on Enterprise, Tourism and Employment Rose Conway-Walsh TD has urged the Irish government to engage with the Northern Executive to ensure the all-island economy is protected from the tariffs.

Mayo TD Rose Conway-Walsh wants all-island approach to address new tariffs

“The possibility of a differentiation in tariffs on the island further compounds the threat to our national economy and clarity is required regarding the implications of the tariffs in the north under the terms of the Windsor Framework.

“Our island economy is inextricably linked in sectors such as agriculture, tourism and across supply chains. During the Brexit negotiations the Irish government helped ensure there was no hard border on the island of Ireland. The same diligence must be applied in this scenario in order to protect the prosperity of everyone on our island.

“Now is the time for a calm approach from the Irish government and for the maximum amount of engagement to take place on a north south basis and by the Irish government with the EU and US to ensure the best possible outcome for Irish businesses.

“It is widely acknowledged that US tariffs will damage the Irish economy, however counter tariffs from EU could also push up prices for Irish consumers and risk jobs so at this juncture I am calling for a measured approach from the Irish government aimed at de-escalating the situation rather than rushing headlong into the introduction of counter tariffs,” she said.