Congressional Bourbon Caucus Calls for Section 232 Ceasefire With Europe
Although many American liquor exports received a reprieve with the lifting of Boeing tariffs in Europe, bourbon and other American whiskeys continue to face a 25% punitive tariff in the European Union and the United Kingdom because of Section 232 tariffs on those countries' steel and aluminum exports. At the time the tariffs were imposed, Sen. Mitch McConnell, R-Ky., was majority leader, so the product choice was considered to create additional pressure on the administration to reverse the action.
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“This tariff issued in June 2018, in response to U.S. tariffs on steel and aluminum, is scheduled to double to 50 percent on June 1, 2021,” wrote Rep. John Yarmuth, D-Ky., and Rep. Andy Barr, R-Ky., in a letter to U.S. Trade Representative Katherine Tai. “These tariffs have damaged what had been a great American export success story for many years. 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.
“Craft distillers across the U.S. are suffering from these tariffs and the crushing impact of the COVID-19 pandemic. Forty-one percent of their sales have evaporated, and 31 percent of their employees have been furloughed since the start of the pandemic. 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 distillers will be put out of business.” The letter, sent April 5, was signed by 50 members of the House.