U.S., EU agree to remove ‘retaliatory tariffs’ on Kentucky bourbon, officials say

Jeremy Chisenhall
·2 min read

The United States and European Union have reached a trade agreement which will, in part, remove tariffs on Kentucky bourbon, according to U.S. officials.

The tariffs were called “retaliatory” by U.S. Commerce Secretary Gina M. Raimondo and the Kentucky Distillers’ Association. There was a 25 percent fee on Kentucky bourbon and American whiskey, and the cost was set to double in December, according to the Kentucky Distillers’ Association.

“These unfortunate tariffs have slashed exports of Kentucky bourbon by 50% to the E.U. and the United Kingdom, costing distillers, industry partners and farm families hundreds of millions of dollars,” Kentucky Distillers’ Association President Eric Gregory said in a statement. “Kentucky Bourbon exports had enjoyed double-digit growth for a decade before the tariffs were imposed in 2018.”

Bourbon is an $8.6 billion industry that generates more than 20,000 jobs for Kentucky residents, according to Beshear.

Beshear on Sunday tweeted his support of the agreement and thanked Raimondo and President Joe Biden.

“The EU-US announcement to remove tariffs on Kentucky bourbon is great news,” Beshear said in a tweet.

The Kentucky Distillers’ Association also said Kentucky distillers have spent billions of dollars trying to meet growing demand for bourbon.

The tariff agreements did more than just remove tariffs on bourbon and whiskey going into Europe.

The new agreement, announced by the United States over the weekend, will avoid retaliatory tariffs on other U.S. brands like Harley Davidson, according to Raimondo.

It’s also intended to help “reduce inflationary pressures on products like cars, trucks, appliances and canned goods” and help resolve supply chain issues by supporting increased steel and aluminum capacity in the U.S., according to Raimondo.

The agreement doesn’t completely remove tariffs on aluminum and steel but does allow “limited volumes of EU steel and aluminum to enter the U.S. territory,” Raimondo said, according to CNN.

The Kentucky Distillers’ Association urged the United States and United Kingdom to resolve tariff disputes too. Tariffs from the U.K. are still affecting Kentucky bourbon exports, according to the distillers’ association.