HADLEY — People are drinking more V-One Vodka, but brand founder and owner Paul Kozub is eating the cost of tariffs on the vodka imported from Poland.
"I can't go up in price. My main competitor, Tito's, is a U.S.-made vodka," Kozub said. "But I might have to consider it in 2026."
Kozub figures the cost of import tariffs, a cornerstone of President Donald Trump's international and domestic policy, cost him $100,000 in 2025.
His distillery is in Kamień, Poland. V-One Vodka is headquartered in Hadley and has a warehouse in Springfield.
The import duty was set at 15% after a deal was reached with the European Union in July. But even that deal left the alcohol industry seeking further reductions.
The year 2025 was Kozub's 20th in business, and sales were up a few percentage points. But on average, alcohol brands were down last year by 5% to 15% due to changing consumer habits.
He said he's seen growth in eastern Massachusetts and on the Cape and Islands. Without the tariffs, he'd hire more salespeople and grow faster.
"Profitability is nowhere near where it needs to be," he said.
Last month, bourbon maker Jim Beam announced it would halt whiskey production at its main distillery in Clermont, Kentucky, for all of 2026. The company cited slumping sales, high inventory of aged product and trade issues.
Lenny Underwood of Springfield, the founder of Upscale Socks, said he hasn't ordered a consignment of socks from overseas lately, and his suppliers are flexible on terms and price. They are wary of losing business amid trade wars.
But he's going to add underwear to the product line in the middle of 2026. And tariffs could impact those costs.
"We'll see where we land with underwear," Underwood said.
A Supreme Court ruling could change the situation radically as soon as Friday. The court has been asked to rule if Trump's novel use of emergency powers to impose the tariffs was unconstitutional.
And a ruling against Trump could entitle importers to refunds.
Opponents, including U.S. Rep. Richard E. Neal, D-Springfield, say the Constitution grants Congress, not the president, the authority to impose tariffs and regulate commerce with foreign nations.
Neal signed on to a brief supporting plaintiffs against the president. And he was at the Supreme Court in November to hear oral arguments on the case , coming away feeling that justices are likely to strike down the law.
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