Nashville distiller says Trump policies may present new opportunities

Hard Truth Distilling Co. co-owner Jeff McCabe has done well with his Nashville, Indiana-based whiskey company by seeing opportunity where others see impediments.

McCabe began his first foray into beer making in 2008 during the Great Recession—an inopportune time for most financial institutions. When COVID hit in 2020, McCabe said, Hard Truth bought 150 picnic tables to drum up business by offering outside seating that drew whiskey lovers from outside Brown County.

When the Trump administration announced new tariffs on Feb. 1 for most Canadian, Mexican and Chinese goods, McCabe was once again worried but said his Indiana whiskey producer will be fine.

Hard Truth gets the majority of its ingredients (corn and wheat) from Indiana, McCabe said, though the distillery buys some of its rye from the northwestern United States. Hard Truth gets its corks from Europe. And there’s a robust secondary market overseas for used whiskey barrels that might be affected, but all in all, he said, Hard Truth is “in good shape” when it comes to logistics and tariffs.

“Anytime there’s uncertainty, that increases risk, but it also increases opportunity,” McCabe said. “I think when it comes to tariffs, they do create uncertainty. … For us right now, it’s not an issue. But when there is risk, you evaluate your whole supply chain and examine where gaps could be.”

Hard Truth also likely won’t be impacted by counter-tariffs Canada and Mexico might impose on exports from U.S. distilleries.

Data from the U.S. International Trade Administration shows Indiana exported $54 million worth of beverage and tobacco products to Canada last year, making that country the largest importer of Indiana beverage and tobacco products.

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Canada ordered counter-tariffs on American imports after the president’s tariff announcements, which included beverages, until he announced a reprieve last week, the AP reported. Before the pause, authorities in several provinces said they planned to remove American liquor brands from government store shelves.

But the threat of tariffs has already led to a decrease in exports from U.S. distilleries. That means companies that export their products might suddenly find themselves with an abundance of supply, leading them to drop prices.

McCabe said he’s not too worried about that because he believes Hard Truth stands out enough to keep his current customers coming back, even if competitors begin offering a cheaper product.

“We’re already seeing with some of the biggest players some price movement downwards. For us, the key is, we have to have a very differentiated product from the big guys,” McCabe said.•