Distilled Spirits Council Statement on the Senate Confirmation of Katherine Tai as U.S. Trade Representative
On behalf of the nation’s distillers, we congratulate Katherine Tai on her confirmation as United States Trade Representative. We look forward to working with her to build back our key trading relationships, which will help restore important export markets and support American jobs.
The immediate and critical trade issue facing our industry is the urgent need to return to duty-free trade in distilled spirits between the U.S., EU and UK.
While there has been some important progress in de-escalating trade tensions and suspending certain tariffs on EU spirits, it is essential that American Whiskeys, including America’s native spirits, Bourbon and Tennessee Whiskey, are not left behind.
The continued application by the EU and UK of a 25 percent tariff on American Whiskeys in response to the steel and aluminum dispute is having a devastating impact on our exports. Since the EU’s tariffs were imposed, American Whiskey exports to the EU have declined by 37 percent and to the UK by 53 percent.
American Whiskey exports will nosedive even further with the scheduled doubling of the EU’s tariff to 50 percent on June 1, which cannot be allowed to happen.
Recent action by the Administration, and the UK and EU governments, to suspend tariffs on several spirits products related to the Boeing-Airbus dispute are helping to reset these important trading partnerships. However, tariffs on American Whiskey continue, which are harming small, medium and large producers across the United States.
We strongly urge that Ambassador Tai prioritize negotiations with the EU and UK to secure the immediate suspension of tariffs on American Whiskey and agreements that result in the permanent removal of all tariffs on U.S., EU, and UK distilled spirits.
Swift removal of these tariffs will help support U.S. workers and consumers as the economy and hospitality industry continue to recover from the pandemic.
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Timeline and Impact of U.S.-EU-UK-Retaliatory Tariffs on Distilled Spirits