Producer of Jack Daniel’s Brown-Forman Corp. will have to raise price of American whisky sold to European Union after new 25% import tariff is implemented, Bloomberg reports. Price increase for customers will be about 10%.

Shares of Brown-Forman, which also produces bourbon, including Woodford Reserve, fell on Monday by 3% to $48,30, the lowest level in seven months.

According to the representatives of the company, its positions are strong enough to handle increase in duties, however, only time will show how EU customers will react. Despite of the fact that Europe is the biggest market, the company sells Jack Daniel’s in more than 170 countries around the world. The biggest market is the US.

Goldman Sachs Group Inc. reduced company’s estimate for earnings per share by 4% to 5% in current and next financial years.

Last week European Commission approved 25% tariff on 2,8 billion euro of American import to EU. This decision influenced Harley-Davidson Inc. motor cycles, Levi Strauss & Co. jeans and whisky and became an answer to US tariffs on metals.

Harley-Davidson said that it plans to move some production out of US.

Brown-Forman, based in Kentucky, said that it is too early to forecast tariffs influence on sales. Company tries to create large enough inventory in France, Spain, Germany and Poland where it has own distribution chains.