KENTUCKY — Bourbon makers breathed a sigh of relief this weekend after the U.S. and European Union agreed to lift tariffs on bourbon and whiskey.
What You Need To Know
- The U.S. and European Union have lifted tariffs on bourbon and whiskey
- The agreement came during the G-20 Summit on Saturday
- EU's 25% tariffs were set to double in December
- U.S. still has similar tariffs between the United Kingdom
The nations finalized the move during the G-20 Summit on Saturday. The 25% tariffs had been hampering businesses in Kentucky for three years, and were set to double to 50% in December.
In a statement, the Kentucky Distillers' Association praised the announcement and the positive impact it will have on one of Kentucky's largest industries.
"The KDA thanks the steadfast leadership of the Biden administration, Kentucky Gov. Andy Beshear, Congressman John Yarmuth and officials in Europe for their tireless efforts to resolve this ongoing trade dispute and to restore fairness in overseas markets for Kentucky’s signature distilled spirits industry," said KDA President Eric Gregory.
The Trump administration had placed taxes on EU steel and aluminum in 2018 on the claim that the foreign products produced by American allies were a threat to U.S. national security. Europeans and other allies were outraged by Trump’s use of Article 232 to justify the tariffs, leading many to impose countertariffs on U.S.-made motorcycles, bourbon, peanut butter and jeans, among other items.
National security adviser Jake Sullivan, U.S. Trade Representative Katherine Tai and Commerce Secretary Gina Raimondo announced the agreement Saturday. They said that the Article 232 tariffs won’t be removed entirely but that some quantity of European steel and aluminum will be allowed to enter the U.S. without tariffs under the deal.
The tariffs slashed Kentucky bourbon exports to the EU and United Kingdom by 50%, the KDA said. The tariff between the U.S. and U.K. is still in effect, and the KDA urged both parties to resolve that conflict as well.
Kentucky distillers are in the middle of a $5 billion building spree to meet the growing global thirst for America’s only native spirit. There are now a record 10.3 million barrels of Bourbon aging in Kentucky, the most in the Commonwealth’s 200-year distilling history.
The Associated Press contributed to this report.
-
