Kentucky’s bourbon industry could see a massive tariff on one of the state’s signature products if the Biden Administration and the European Union don’t reach an agreement. The trade war that started during the Trump Administration and led to a 25 percent tariff on distilled spirits was paused three years later – but the ceasefire ends at the end of the year. Eric Gregory is president of the Kentucky Distillers Association.
“Not only does the proposal expire on January 1, if a deal hasn't been reached, it will double to a 50% tariff on bourbon, on American whiskey, which would be absolutely devastating for our industry.”
Gregory said Kentucky’s congressional delegation and Governor Beshear are working with the Biden Administration to avoid that scenario. The trade war began when then-President Trump imposed tariffs on imported aluminum and steel, but President Biden hasn’t satisfied EU leaders on steel and aluminum and the 50 percent tariff on distilled spirits is less than three weeks away.
“We've done about all we can, we've sounded the alarms. We have contacted as many people that we know, multiple times. But these decisions are made at such a high level. And trade negotiations are always very sensitive anyway.”
Gregory said he’s cautiously optimistic a deal will be reached.
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