Jackson Purchase News

WASHINGTON, D.C. - U.S. Senate Republican Leader Mitch McConnell (R-KY) and U.S. Senator Rand Paul (R-KY) have called on the Biden Administration to take immediate action in order to safeguard millions of American jobs that rely on bourbon and spirits producers. The European Union (EU) plans to impose a 50% tariff on American whiskey imports starting January 1, 2024, and there could be significant tariff increases on American wine and other distilled spirits imports by 2026.

The retaliatory tariffs imposed by the EU have already caused significant financial losses for domestic spirits distillers and winemakers, amounting to billions of dollars since 2018. It is crucial for the United States to find a permanent solution to protect the more than 1.7 million jobs in production, distribution, and hospitality sectors that depend on the bourbon and spirits industry. In the state of Kentucky alone, these industries support over 35,000 jobs and contribute over $14 million to the state's economy.

In a letter addressed to U.S. Trade Representative Katherine Tai, McConnell and Paul urged for swift negotiations with the EU to permanently remove the retaliatory tariffs on American-made spirits and wines. They emphasized the need for a permanent solution to avoid the reimposition of tariffs and the consequent damage it would cause to the industry.

The senators highlighted the cultural and economic significance of the spirits industry, with U.S. distilled spirit exports reaching $2.06 billion in 2022. However, the impact of the retaliatory tariffs has been devastating, and the imposition of additional tariffs would only worsen the situation. McConnell and Paul stressed that a path forward must be found, and they believe that spirits and wines can be a point of consensus to limit the damage for all parties involved.

The bipartisan letter received support from several other senators, including Catherine Cortez Masto (D-NV), Tim Kaine (D-VA), Todd Young (R-IN), Mike Crapo (R-ID), Mark Warner (D-VA), Marsha Blackburn (R-TN), Joe Manchin (D-WV), Roger Marshall (R-KS), Jacky Rosen (D-NV), Bill Hagerty (R-TN), Maria Cantwell (D-WA), Katie Britt (R-AL), Mike Braun (R-IN), and Gary Peters (D-MI).

The full text of the letter can be accessed HERE.

This call to action by Sens. McConnell and Paul highlights the urgency of the situation faced by American bourbon and spirits producers. The impending tariffs by the EU threaten to cripple the industry and put millions of American jobs at risk. The senators' letter emphasizes the need for a permanent solution to remove the retaliatory tariffs and protect the livelihoods of those employed in the production, distribution, and hospitality sectors.

The economic impact of the spirits industry is significant, with billions of dollars at stake. The loss caused by the current retaliatory tariffs has been devastating, and the imposition of additional tariffs would only exacerbate the situation. Sens. McConnell and Paul stress the importance of finding a mutually beneficial path forward, where consensus can be reached to limit the damage for all parties involved.

With bipartisan support from other senators, this call for action sends a strong message to the Biden Administration. The protection of American jobs and industries should be a top priority, and negotiations with the EU must be expedited to secure the permanent removal of retaliatory tariffs on spirits and wines.

The fate of millions of American jobs and the economic well-being of the bourbon and spirits industry now rest in the hands of U.S. Trade Representative Katherine Tai and the Biden Administration. The urgency and importance of finding a resolution cannot be overstated.

For additional details, please follow this link: https://www.mcconnell.senate.gov/public/index.cfm/pressreleases?ID=C7274ABC-9FF6-4550-A673-F6DA0D907359