U.S. Rep. Andy Barr (R-KY), co-chair of the Congressional Bourbon Caucus, sent bipartisan correspondence on April 5 urging for increased U.S. efforts to work with the European Union (EU) and United Kingdom (UK) to suspend tariffs on American whiskey.
The letter, signed by caucus co-chair Rep. John Yarmuth (D-KY) and 48 House colleagues, was sent to Katherine Tai, the newly confirmed U.S. Trade Representative. It cited the recent decline in U.S. bourbon exports as well as the negative impact the tariffs have had on all distilled spirits and wine, particularly during the COVID-19 pandemic.
“These tariffs have damaged what had been a great American export success story for many years,” the members wrote. “American whiskey exports to the EU, our largest export market, grew from $502 million in 2008 to $702 million in 2018, an increase of 40 percent. Since the tariffs were imposed, our American whiskey exports to the EU have declined by 37 percent and to the UK by 53 percent.”
The current 25 percent EU and UK tariff imposed on American whiskey went into effect in June 2018 and is set to double to 50 percent on June 1, according to Rep. Barr’s office.
As of 2020, the members wrote, there were more than 2,000 craft distilleries in the United States and American whiskey was exported from 37 states. Since the onset of the pandemic, 41 percent of their sales have disappeared and 31 percent of their employees have been furloughed.
“Absent urgent action to fully suspend these tariffs, American whiskey will remain at a serious competitive disadvantage in our two most important export markets, and we fear many craft distilleries will be put out of business,” the members wrote.
The lawmakers noted that while some tariffs have been temporarily suspended as the Biden administration works to resolve a current World Trade Organization aircraft dispute, Tai should work with her counterparts to remove all tariffs affecting distilled spirits and wine.
“The suspension of tariffs is happening at a critical time for the U.S. hospitality industry and the beverage alcohol sector,” the members wrote. “Permanently lifting the tariff burden will also support the recovery of restaurants, bars and small craft distilleries across that country that were forced to shut down their businesses during the pandemic.”