American Whiskey Industry Breathes a Sigh of Relief as EU Pauses Tariffs Thanks to Biden Administration, Bipartisan Efforts
The whiskey tariffs have been temporarily suspended for 2024. (Photo: Ian West/PA Wire URN:19631739)
On Tuesday, a news release from Nevada Senator Catherine Cortez Masto announced that hospitality workers, distillers and suppliers can breathe a sigh of relief due to the temporary pause of whiskey tariffs that were set to go into action in 2024. The 50% tariffs would have been implemented by the European Union if the Biden administration failed to act.
Senators Catherine Cortez Masto, D-NV; Todd Young, R-ID; Tim Kaine, D-VA; and Rand Paul, R-KY penned a letter to the Biden administration on Dec 5, urging U.S. Trade Representative Katherine Tai to negotiate a deal with the E.U. to eliminate the “devastating tariffs on American exports and stand up for American workers.”
On Tuesday, the E.U. announced it would pause the tariffs for 15 months, thanks to negotiation from the Biden Administration.
“There are more than 19,000 Nevadans whose jobs depend on the American spirits industry, and I’m pleased to see the Administration taking action to protect them from these harsh new tariffs on our exports,” Senator Cortez Masto said in a news release. “I will continue to advocate to protect this vital industry, which helps drive our economy in Nevada and across the country.”
In Nevada, the spirits industry supports over 19,000 jobs and over $1.6 billion in economic activity. Though the tariffs were not eliminated, the temporary pause has relieved some of the pressure on the industry.
In July, the Toasts Not Tariffs Coalition urged the U.S. and E.U. to come to a trade agreement. From 1997 to 2018, the US had duty-free access to the EU until former US President Donald Trump introduced a 25% tariff on steel and aluminum from Europe. The EU pushed back with a 25% tariff on American whiskey, resulting in American whiskey exports dropping by approximately 20%.
According to Senator Catherine Cortez Masto, the tariffs have cost “domestic spirits distillers and winemakers billions of dollars since 2018.” Though the current pause is welcome news worth raising a glass to, the senator is currently pushing for a more fixed resolution.
“… the U.S. needs a permanent solution to safeguard over 1.7 million production, distribution and hospitality jobs that rely on the industry,” the letter read.
On Tuesday, the Kentucky Distillers’ Association expressed gratitude for the suspension of the tariffs in a letter.
“Our signature industry has worked hard to recover and regain footing from the last short-term suspension of tariffs. As Bourbon takes years of aging to perfect, a permanent solution will bring certainty to our distillers as they look to continued growth and investments in international markets,” the letter read. “We appreciate and applaud the efforts of the Biden administration and Kentucky Gov. Andy Beshear to secure the extended suspension of the tariffs. We look forward to the day when we can return to free and fair trade and our main business of making the world’s finest whiskey.”
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