In response to US duties on Chinese goods, China and the European Union recently retaliated with their own tariffs, including a 25% tariff on American whiskey. And it's not just the big US producers feeling the squeeze as some local distilleries struggle to make ends meet. Mark Niu reports from Seattle.

At the OOLA distillery, founder Kirby Kallas-Lewis experiments with ingredients grown by his own hands.

KIRBY KALLAS-LEWIS FOUNDER, OOLA DISTILLERY "Lemon verbena that we use for our citrus. Put it right in here. I'm gonna add this to what we've infused before and then fill it with crystal clear vodka, just like water. And in a matter of days, this is what you get."

Kirby often resembles a mad scientist, constantly searching for the perfect infusion for vodka, whiskey and gin. When he heard that since 2001 American spirits exported to China grew by 1,200 percent, he strategized to send his products abroad.

KIRBY KALLAS-LEWIS FOUNDER, OOLA DISTILLERY "Build our capacity and then focus on the EU and China at the same time, and then boom. The tariffs hit and changed everything."

In July, both China and the European Union responded to new U.S. duties by hitting a number of U.S. products, including whiskey with a 25% tariff.

MARK NIU SEATTLE, WASHINGTON "OOLA distillery spent a year and a half getting this column still custom built and installed here at cost of more than $200,000. The idea was for the device to help the company speed up production and target the international market. But when the tariffs hit, the idea was put on hold."

The column still has yet to be used. Kirby also scrapped plans to double his staff.

KIRBY KALLAS-LEWIS FOUNDER, OOLA DISTILLERY "It was like a house of cards, every market that we would maybe reach out to all fell so fast. But also, they chose products that their consumers would have another alternative. They didn't want to hurt their own people. And I went 'ouch,' they are right. Of course, they'll just buy another whiskey. And this is a trend we're riding and you want that wave to keep going and be part of it."

A less profitable international market means the big American whiskey producers may flood the U.S. market with their extra supply. A nearby restaurant that serves OOLA's spirits, says it's important to support small business distillers as they fight to stay afloat in a turbulent trade war.

DONNA MOODIE, OWNER MARJORIE RESTAURANT "I could simply say I think it's ridiculous. I think we have created a market that's very international. I think a lot of businesses really rely on exporting to an international market."

While this experience has left Kirby with a bad taste in his mouth, if tariffs are lifted, he'll still target international markets.

KIRBY KALLAS-LEWIS FOUNDER, OOLA DISTILLERY "Absolutely, but I am going to be so gun shy. When we do, I'm going to be so gun shy, I'm going to dip my toe into it. Right now, I was ready to go knee deep."

Having spent so much time dealing with volatile market conditions, Kirby just wants to focus on what gives his business an edge, delivering innovative sensations consumers have never experienced before. Mark Niu, CGTN, Seattle.