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Will tariff increases affect my pricing?

How do current tariff changes impact costs for alcohol?

As you may know, U.S. tariffs are affecting the cost of imported ethyl alcohol. Current tariffs on imported products in OAC's supply chain range from 10% to 52.5%. While the Supreme Court has yet to determine the tariff's legality, it remains in effect.

OAC is committed to transparency and partnership as we navigate these uncertainties. We want to update you on how our imported alcohol products will be impacted.

Over the past few months, we've implemented strategic measures across our supply chain. By working with our producers and suppliers, we've absorbed tariff-based cost increases and minimized what we need to pass on to our valued customers. We've postponed adding any tariff costs as long as possible and have not yet passed any costs to our customers, despite paying the tariffs since mid-July of this year.

We're pleased to be able to minimize the cost impact of this unfortunate and volatile situation. OAC will continue to absorb approximately 75% of the import tariffs. Beginning November 15th, 2025, a tariff line item of only $0.25 per gallon will be added to our Certified Organic Cane, Grape, and Wheat alcohol for 55-gallon drum, Tote, and Bulk volume orders only. We will not raise prices on small-volume sales for these products.

OAC will continue doing everything we can to minimize tariff impacts and unless significant tariff increases occur, we will continue absorbing the majority of these cost increases. We hope the tariffs will be short-lived and if any reductions are realized or if tariffs are removed, we will immediately adjust or remove the tariff fees for any impacted products.

Thank you for your continued partnership and understanding during this challenging period. We'll keep you informed as the situation evolves. In the meantime, please don't hesitate to reach out to us directly for samples of alternative products or any questions you may have.