MANCHIN, BIPARTISAN COLLEAGUES URGE ADMINISTRATION TO SAVE AMERICAN JOBS, ELIMINATE RETALIATORY TARIFFS ON WHISKEY AND SPIRITS
Letter
Dear Ambassador Tai,
We write today to request an expedited agreement with the European Union (EU) to
secure the permanent removal of retaliatory tariffs on spirits and wines. While we applaud the
Administration's efforts to suspend retaliatory tariffs for five-years on spirits and wines in the
WTO Large Civil Aircraft Dispute and the two-year pause on American Whiskeys in the steel
and aluminum dispute, we are deeply concerned that a lack of a permanent fix risks the reimposition of tariffs. As of now, a 50 percent tariff is set to hit American Whiskeys on January 1,
2024.
Spirits have had a significant cultural impact in our country, and currently have a
profound impact on the U.S. economy. In 2022 alone, U.S. distilled spirit exports reached $2.06
billion. But the impact of the retaliatory tariffs was devastating. For the American Whiskey
industry, exports decreased from $702 million to $440 million, a loss of 20 percent between
2018 and 2021. In 2022, American spirits exports rebounded over 2017 pre-tariff levels -- the last
full year before retaliatory tariffs -- due in large part to the suspension of retaliatory tariffs. For
many in the hospitality industry and others such as retailers, grocers, importers and distributors,
many of which are small, locally-owned businesses, the impact was severe, compounded by the
onset of the Covid-19 pandemic.
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. 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.
We look forward to your support in finding a permanent fix for retaliatory tariffs on
spirits and wines.
Sincerely,
Source