Bowling Green Today

In a letter addressed to the Biden Administration, U.S. Senator Rand Paul and Senate Republican Leader Mitch McConnell have called for swift action to protect American jobs and remove retaliatory tariffs on bourbon and spirits. The European Union (EU) plans to impose a 50% tariff on American whiskey imports starting January 1, 2024, and there is a possibility of sharp tariff increases on other distilled spirits imports by 2026.

The consequences of retaliatory tariffs imposed by the EU since 2018 have been significant, costing domestic spirits distillers and winemakers billions of dollars. This has put over 1.7 million production, distribution, and hospitality jobs that depend on the industry at risk. In Kentucky alone, the bourbon and spirits industries support over 35,000 jobs and contribute over $14 million to the state's economy.

In their letter to U.S. Trade Representative Katherine Tai, the senators emphasized the need for a permanent solution. They urged the negotiation of a deal to permanently remove retaliatory tariffs on all American-made spirits and wines. The senators stated, "We are deeply concerned that a lack of a permanent solution risks the re-imposition of tariffs." They highlighted the devastating impact of the tariffs on the industry and stressed that the imposition of additional tariffs would be detrimental.

The senators emphasized the cultural and economic significance of the spirits industry, pointing out that U.S. distilled spirit exports reached $2.06 billion in 2022. They called for finding a path forward and reaching a consensus to limit the damage for all parties involved.

The bipartisan letter received support from several other senators including Catherine Cortez Masto, Tim Kaine, Todd Young, Mike Crapo, Mark Warner, Marsha Blackburn, Joe Manchin, Roger Marshall, Jacky Rosen, Bill Hagerty, Maria Cantwell, Katie Britt, Mike Braun, and Gary Peters.

This call for action aims to protect American jobs and ensure the long-term viability of the bourbon and spirits industries. The senators' letter emphasizes the need for a permanent resolution to remove retaliatory tariffs and safeguard the livelihoods of millions of workers in the sector.

To learn more, click on this link: https://www.paul.senate.gov/sens-paul-mcconnell-urge-biden-administration-to-protect-american-jobs-remove-retaliatory-tariffs-on-bourbon-and-spirits/