In Hadley, V-One Vodka is facing significant financial challenges due to newly imposed tariffs. Founder Paul Kozub disclosed that before he can receive a shipment of 2,000 vodka cases from Poland, he must pay an $8,000 tariff, in addition to a hefty federal liquor excise tax of $25,000 to $28,000 per shipment. This added cost is particularly burdensome for small businesses like his, especially given the current inflation and rising operational costs.

Kozub expressed his frustration over the additional 10% tariff on European goods, stating, “You’re already taxing this product, and now you are levying a 10% additional tax.” He highlighted that this tariff is a considerable hit to profit margins, which are already strained in the industry. With V-One Vodka set to celebrate 20 years in business, Kozub has strived to distinguish his brand by investing in a state-of-the-art distillery in Poland, allowing him to maintain high-quality production.

Unexpectedly learning about the new tariff from his customs broker, Kozub hoped to avoid it as the shipment had left Europe before its announcement. Now he faces the dilemma of choosing between paying the tariff to clear his shipment or risking costly storage fees at the port. This shipment is critical, particularly as the holiday season approaches, which typically sees increased sales of alcohol.

Despite already raising prices 18 months ago, Kozub finds little room for further increases without risking a loss of market share. He noted, “It feels like there is not room for me to go up anymore.” His commitment to using high-end ingredients, such as local maple syrup in his V-One Hazelnut Vodka, reflects his dedication to quality, even as he battles the financial implications of tariffs and rising production costs tied to the ongoing war in Ukraine.

Kozub has actively sought assistance from local political representatives in hopes of finding relief from the tariffs. While he acknowledges the broader aim of the tariffs—reshoring U.S. manufacturing—he argues that vodka production in Poland is essential to the beverage’s quality and heritage. He emphasizes that many small businesses are similarly affected, feeling the real impact of these tariffs on their operations.