WASHINGTON — The deadline for the European Union to reimpose a tariff on American whiskeys is now fewer than three months away.

Advocates for Kentucky bourbon are pushing for a resolution to keep the steep tax from going into effect, warning of potential consequences for the industry and the people who work in it.

What You Need To Know

  • The deadline for the European Union to reimpose a tariff on American whiskeys is now fewer than three months away

  • Advocates for Kentucky bourbon are pushing for a resolution to keep the steep tax from going into effect

  • The EU is vowing to reimpose a currently suspended tariff on American whiskeys — this time, at 50% — if the EU and Washington don’t reach an agreement by the end of March in a dispute over steel and aluminum imports into the U.S.

The EU is vowing to reimpose a currently suspended tariff on American whiskeys — this time, at 50% — if the EU and Washington don’t reach an agreement by the end of March in a dispute over steel and aluminum imports into the U.S.

The dustup began in 2018 when then-President Donald Trump placed tariffs on some imported steel and aluminum and the EU retaliated by slapping a 25% tariff on American whiskeys.

Rep. Morgan McGarvey, D-Louisville, co-chair of the Congressional Bourbon Caucus, said the lesson is that sometimes tariffs can backfire.

“It’s going to cost us money, so I’m working with members of the Kentucky delegation right now across the aisle to make sure that they don’t impose retaliatory tariffs on products like bourbon, our signature industry, which would have a big impact on the economy and jobs in Louisville, Kentucky,” he said.

Trump, who is set to begin a second term later this month, has threatened tariffs on Mexico and Canada, creating another worry for the industry.

Chris Swonger, president and CEO of the Distilled Spirits Council of the United States, said in a statement, “Imposing a tariff on Tequila and Canadian Whisky from two of our largest trading partners could kick off more retaliatory tariffs on American spirits to Canada and Mexico.”

More than 50 U.S. trade associations, from bourbon distillers to barrel makers, have joined a coalition calling for the permanent removal of tariffs on spirits and wine, the council said.

Meanwhile, the industry is also keeping an eye on the potential for a dockworkers’ strike, after a suspension of several months.

According to the Distilled Spirits Council, in 2023, more than 70% of American distilled spirits exports passed through ports that would be affected by any job action.

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