Bowling Green Today

Washington, D.C. - U.S. Senator Rand Paul (R-KY) and Senate Republican Leader Mitch McConnell (R-KY) have called on the Biden Administration to take immediate action in order to safeguard American jobs in the bourbon and spirits industry. In a letter addressed to U.S. Trade Representative Katherine Tai, the senators emphasized the need to remove retaliatory tariffs imposed by the European Union (EU) on American whiskey imports.

The EU is set to implement a 50% tariff on American whiskey imports starting from January 1, 2024. Additionally, American wine and other distilled spirits could face significant tariff increases by 2026. These retaliatory tariffs have already resulted in billions of dollars in losses for domestic spirits distillers and winemakers since 2018.

The letter highlighted the importance of finding a permanent solution to protect the over 1.7 million jobs in production, distribution, and hospitality that rely on the bourbon and spirits industry. In Kentucky alone, the industry supports more than 35,000 jobs and contributes over $14 million to the state's economy.

"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," stated Senators Paul and McConnell. They expressed concern that the lack of a permanent solution could result in the re-imposition of tariffs, further damaging the industry. The senators emphasized the cultural significance of spirits in the United States, as well as their substantial impact on the economy. In 2022, U.S. distilled spirit exports reached $2.06 billion.

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 senators concluded their letter by highlighting the mutual benefits of finding a path forward. They believe that spirits and wines can serve as a point of consensus to limit the damage for all parties involved.

The urgency of the matter cannot be understated, as American jobs and businesses are at stake. The Biden Administration now faces the task of negotiating a deal with the EU to permanently remove retaliatory tariffs on all American-made spirits and wines. The full text of the letter can be found on Senator Rand Paul's official website.

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/