Bowling Green Today

In a joint effort, U.S. Senator Rand Paul (R-KY) and Senate Republican Leader Mitch McConnell (R-KY) have penned a letter to the Biden Administration, imploring them to take swift action to safeguard American jobs and eliminate retaliatory tariffs on bourbon and spirits. The European Union (EU) is set to impose a staggering 50% tariff on American whiskey imports starting from January 1, 2024. Furthermore, there is a possibility of sharp tariff increases on American wine and other distilled spirits imports by 2026.

The repercussions of retaliatory tariffs imposed by the EU have been devastating for domestic spirits distillers and winemakers, costing them billions of dollars since 2018. To protect the over 1.7 million production, distribution, and hospitality jobs that rely on the industry, a permanent solution is urgently needed. In Kentucky alone, the bourbon and spirits industries support over 35,000 jobs and generate more than $14 million in state economic activity.

The letter, addressed to U.S. Trade Representative Katherine Tai, asks for expedited negotiations with the EU to secure the permanent removal of retaliatory tariffs on all American-made spirits and wines. "We write today to request an expedited agreement with the European Union (EU) to secure the permanent removal of retaliatory tariffs on spirits and wines," the senators wrote. "We are deeply concerned that a lack of a permanent solution risks the re-imposition of tariffs."

Highlighting the cultural and economic significance of the spirits industry, the senators emphasized the detrimental impact of the retaliatory tariffs. "Spirits have had a significant cultural impact in our country, and currently have a profound impact on the U.S. economy. In 2022 alone, U.S. distilled spirit exports reached $2.06 billion. But the impact of the retaliatory tariffs was devastating," the senators stated. "Our belief is that the imposition of additional tariffs on this industry is detrimental. There are mutual benefits in finding a path forward, and our belief is that spirits and wines are a point where there can be consensus to limit the damage for all parties."

The bipartisan letter was also signed by Senators Catherine Cortez Masto (D-NV), Tim Kaine (D-VA), Todd Young (R-IN), Mike Crapo (R-ID), Mark Warner (D-VA), Marsha Blackburn (R-TN), Joe Manchin (D-WV), Roger Marshall (R-KS), Jacky Rosen (D-NV), Bill Hagerty (R-TN), Maria Cantwell (D-WA), Katie Britt (R-AL), Mike Braun (R-IN), and Gary Peters (D-MI).

The urgency of the matter is palpable, and American jobs hang in the balance. The full text of the letter can be found on Senator Rand Paul's official website. It is now up to the Biden Administration and U.S. Trade Representative Katherine Tai to take appropriate action and protect American jobs while removing retaliatory tariffs on bourbon and spirits.

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