Bowling Green Today

In a joint effort, U.S. Senator Rand Paul (R-KY) and Senate Republican Leader Mitch McConnell (R-KY) have sent a letter to the Biden Administration, calling for immediate action to protect American jobs and remove retaliatory tariffs on bourbon and spirits. The European Union (EU) is set to implement a 50% tariff on American whiskey imports on January 1, 2024, with the possibility of sharp tariff increases on other distilled spirits imports by 2026.

The imposition of retaliatory tariffs by the EU has already caused significant financial damage to domestic spirits distillers and winemakers, costing them billions of dollars since 2018. The repercussions of these tariffs extend beyond the industry itself, as over 1.7 million production, distribution, and hospitality jobs rely on the bourbon and spirits sector. In Kentucky alone, the industry supports over 35,000 jobs and contributes over $14 million to the state's economy.

In their letter, Senators Paul and McConnell urged U.S. Trade Representative Katherine Tai to negotiate a permanent solution to remove retaliatory tariffs on all American-made spirits and wines. They highlighted the cultural and economic significance of the spirits industry, emphasizing that U.S. distilled spirit exports reached $2.06 billion in 2022. However, the impact of retaliatory tariffs has been devastating, and the senators believe that additional tariffs would only worsen the situation.

The bipartisan letter also garnered support from 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 senators emphasized the urgent need for a mutually beneficial agreement with the EU to secure the permanent removal of retaliatory tariffs on spirits and wines. They believe that finding a path forward in this regard will limit damage for all parties involved.

The full text of the letter can be found on Senator Rand Paul's website.

This call to action by Senators Paul and McConnell underscores the importance of protecting American jobs and ensuring a level playing field for bourbon and spirits producers. By urging the Biden Administration to take swift action, they are advocating for the preservation of a vital industry that contributes significantly to the U.S. economy.

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