Sens. Rand Paul and Mitchell McConnell wrote a joint letter to the U.S. Trade Representative Ambassador Katherine Tai requesting an agreement with the European Union to remove the retaliatory tariffs on certain spirits and wines, LEX18 reported Wednesday.
The letter explains that, under the tariffs, American whiskey exports dropped 20% between 2018-21. And, on top of that, at the beginning of 2024, a 50% tariff is set to hit the American whiskey industry.
"Spirits have had a significant cultural impact in our country, and currently have a profound impact on the U.S. economy," Paul and McConnell wrote. "In 2022 alone, U.S. distilled spirit exports reached $2.06 billion. But the impact of the retaliatory tariffs was devastating. ... Our belief is that the imposition of additional tariffs on this industry is detrimental. There are mutual benefits in finding a path forward, and our belief is that spirits and wines are a point where there can be consensus to limit the damage for all parties."
The letter was also signed by senators in Nevada, Virginia, Indiana, Idaho, Tennessee, West Virginia, Kansas, Washington, Alabama and Michigan.
"While we understand that you continue to negotiate towards a deal to settle the dispute related to steel, we believe that the targeting of spirits is extraneous," the letter said. "Likewise, a permanent fix is needed as the two-year pause on American Whiskey tariffs is set to snapback soon. "Understanding that tariffs are a 'tool in the toolbox' in negotiating a deal, the imposition of additional tariffs on this industry would be detrimental. There are mutual benefits in finding a path forward, and our belief is that spirits and wines are a point where there can be consensus to limit the damage for all parties."
Kentucky is the second-highest exporter of distilled spirits in the United States.
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